In Exercise 19.34, what strategy would the company select if it were using the maximin criterion? The maximax criterion? The minimax regret criterion?
In exercise
19.34 Dennis Dunkwright is a former NBA player and free spirit whose face and unusual antics are well known to young Americans across the land. A marketer of athletic shoes is considering the possibility of retaining Dennis to appear in a series of high-profile television ads over the coming fiscal year. If Dennis is associated with their company and stays out of legal and substance abuse difficulties during the year, the company estimates its profits will be $4.4 million for the year. However, if Dennis runs afoul of the law or does anything else that might make the company look bad, the estimated profit would be just $0.5 million. If the company remains with its current spokesperson, who is lesser known but more stable, it estimates its annual profit for the year to be $2.2 million.