A local deli prepares fresh potato salad for its customers every day. The unsold salad has to be thrown away. The demand for potato salad can be classified as low (100 lb), medium (200 lb), or high (300 lb). The production runs being considered are 100, 200, and 300 lb. The payoffs for all combinations of production and demand are shown here.

(a) What is the maximin solution of this problem?

(b) What is the expected monetary value of each action if the probabilities of demand being low, medium, and high are .3, .3, and .4, respectively?

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Production 100 200 300 Demand 100 400 -400 -800 200 300 600 -300 300 -100 700 1,500