21 Recession () 100,000 Boom Expected (E) Value (E) 160,000 130,000 Project A Project B 20,000 230,000 125,000 The X company must choose between one of two projects. Project A is most suited to periods of recession whereas Project B is suited to periods of economic boom. The probability of each of these events is 50%. The estimated profits for each demand level are shown on the table. Which project would be selected if we adopted: a) maximin criterion, b) maximax criterion, and c) regret criterion? 5 Maximin criterion (Project A); Maximax criterion (Project B); Regret criterion (Project A) Maximin criterion (Project B); Maximax criterion (Project A); Regret criterion (Project B) Maximin criterion (Project A); Maximax criterion (Project B); Regret criterion (Both A and B) Maximin criterion (Project B); Maximax criterion (Project A); Regret criterion (None) Impossible to determine