Pat lowe, general manager of chicago foundries, is facing a difficult situation. her plant is currently operating at 60 percent of optimal capacity and is losing money. she has submitted bids on two government contracts, either of which would bring the plant up to capacity.

however, if she were to receive both, she would have to subcontract one of them and would be no better off than she currently is. lowe recently received an invitation to bid on another government contract of the same nature and magnitude as the two she currently has bids on. she is unsure whether she should bid she would prefer to operate at 60 percent capacity than to receive all three bids. past experience has convinced her that she has received contracts of this nature 20 percent of the time. advise ms lowe