Stevie Stone, a bellhop at the Royal Sundown Hotel in Atlanta, has been offered a management position. Although accepting the offer would assure him a job if there was a recession, if good economic conditions prevailed, he would actually make less money as a manager than as a bellhop (because of the large tips he gets as a bellhop). His salary during the next 5 years for each job, given each future economic condition, is shown in the following payoff table:

Select the best decision, using the following decision criteria.
a. Minimax regret
b. Hurwicz (a = .4)
c. Equallikelihood

  • CreatedJuly 17, 2014
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