Question: = A manager has learned that annual profits from four alternatives being considered for solving a capacity problem are projected to be $ 1 5

=A manager has learned that annual profits from four alternatives being considered for solving a
capacity problem are projected to be $15,000 for A, $30,000 for B, $45,000 for C, and $60,000 for D
if state of nature 1 occurs; and $60,000 for A, $80,000 for B, $90,000 for C, and $35,000 for D if state
of nature 2 occurs.
a. Assuming maximax is used, what alternative would be chosen? Choose alternative C ($90,000).
b. Assuming maximin is used, what alternative would be chosen? Choose alternative C ($45,000).

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