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 Alternative Do nothing Expand Subcontract NEXT YEAR'S DEMAND LOW Hith $50 560 20 80 40 70 * Profit in 5 thousands Click here for the Excel Data File Which alternative should be selected if the decision criterion is (Enter your answers in thousands.) Payoll Alternative a b Criterion Ma King Maximin Laplace Minimax regret C d

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