John Wiley Publishing Company publishes an operations management textbook that is scheduled for a revision. The book has been moderately successful, but each year more new books enter the market, some existing books are dropped by publishers, and various innovative pedagogical approaches are introduced by authors and publishers, such that the competitive market is always highly uncertain. In addition, the role the Internet will play in future textbook publishing is an unknown. As a result, Wiley is trying to decide whether to publish the next edition of the OM book as a smaller paperback, publish a new edition very similar in size and content to the current edition, significantly revise the book with an emphasis on services and processes, or make a major revision with significant physical changes including adding color and more graphics. The following payoff table summarizes the possible revision decisions with profits (or losses) for the three-year lifecycle of the new edition, and the future states of nature relative to the competitive market.

Determine the best decision for the publisher using the following criteria.
a. Maximax
b. Minimax
c. Equal likelihood
d. Hurwicz (α =.35)

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Competitive Market Publication Decision Unfavorable Same Favorable Paperback Similar revision Major content revision Major physical revision 105,000 280,000 972,000 $68,000 $170,000 $395,000 24,000 375,000 672,000 31000 515,000 725,000