Sunshine Health Club is planning to build a new athletics and recreation facility and is debating which of the service feature alternatives (shown in Table F.29) to include in addition to the usual features of a health club such as a weight room, aerobics room, locker rooms and showers, and offices. Customer demand for these features (which is uncertain) determines their profitability. The payoffs associated with each of these service feature alternatives for three different demand scenarios are also given in Table F.29.

Determine the best decision for the health club using each of the following criteria:

1. The Laplace criterion

2. The maximin criterion

3. The maximax criterion

4. Hurwicz criterion (α = 0.6)

5. The minimax regret

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Demand Service Features High Moderate Low Swimming Pool Runing Track Child-care Center Indoor Basket Ball court -$60,000 $100,000 $30,000 $10,000 $22, 000 $5,000 $45,000 $48,000 $25,000 $32,000 $22,000 -$20,000 -$15,000 Sauna $17,000 $5,000 Food Court $15,000 -$35.000 $75.000