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
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 and respectively. The following payoff table has been created to help with the decision:
Decision High Demand Average Demand Low Demand
Small Facility $ $ $
Med Facility $ $ $
Large Facility $ $ $
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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