ABC Inc. must make a decision on its current capacity for next year. Estimated profits (in $000s) based on next year's demand are shown in the table below.

Next Year's Demand

Alternative Low High

Expand $100 $200

Subcontract $50 $120

Do Nothing $40 $50

Refer to the information above.

a. Which alternative should be chosen based on the maximax criterion?

b. Which alternative should be chosen based on the maximin criterion?

c. Which alternative should be chosen based on the Lapalce criterion?

d. Which alternative should be chosen based on criterion of realism with alpha = 0.7?

e. Which alternative should be chosen based on the minimax regret criterion?

Please use the Excel template from Chapter 3 and attach here.