Question: A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm's capacity. The contractor must now make a decision

A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm's capacity.
The contractor must now make a decision on capacity for next year. Estimated profits under each of the two possible states of nature
are as shown in the table below. Which alternative should be selected if the decision criterion is:
a. Maximax?
b. Maximin?
c. Laplace?
d. Minimax regret?
NEXT YEAR'S DEMAND
"Profit in $ thousands.
Refer to Problem 1. Suppose after a certain amount of discussion, the contractor is able to subjectively assess the probabilities of low
and high demand: low
A small building contractor has recently experienced two successive years in

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