Question: 5 . A manager is trying to decide whether to build a small, medium or large facility. Demand can be high, average, or low, with

5. A manager is trying to decide whether to build a small, medium or large facility. Demand can be high, average, or low, with the estimated probabilities being 0.15,0.50, and 0.35, respectively. The following payoff table has been created to help with the decision:
Decision High Demand Average Demand Low Demand
Small Facility $80,000 $90,000 $100,000
Med Facility $115,000 $150,000 $35,000
Large Facility $185,000 $95,000 $15,000
Which alternative is best, according to each of the following decision criteria?
a. Maximin
b. Maximax
c. Laplace
d. Minimax regret
e. Expected value

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