Joyce is the director of manufacturing for Titan Industries, which is considering building a new facility in the Midwest. The demand for the product manufactured in the facility will be either strong or weak. The following decision table summarizes Joyce€™s options and the associated payoffs in millions of dollars.

Using the decision table, choose the best option for Joyce using the following criterion:
a. Maximax
b. Maximin
c. Equally likely
d. Minimax regret
e. Hurwicz using α = 0.7

Transcribed Image Text:

Demand Option Build large faciliy $I Build small facility Don't build facility Strong $1.3 $0.8 $0 Weak -$0.2 $0