Question: Answer the following questions. Write a brief report (max 2 pages) with the logic behind you answer. A firm is analyzing 4 different alternatives (A,

Answer the following questions. Write a brief

Answer the following questions. Write a brief report (max 2 pages) with the logic behind you answer. A firm is analyzing 4 different alternatives (A, B, C and D) for the investments of the next year. The firm can implement at most 1 of these alternatives. The corresponding costs of implementing these alternatives are the following: Alternative Cost A 800 B 400 1200 D 600 The Operations Department estimated the output (incomes) derived from the alternatives, but the estimation considers three scenarios (1, 2 and 3): Alternative Scenario 1 Scenario 2 Scenario 3 600 1400 1800 B 350 700 1000 C 1100 1500 1800 D 100 1300 2000 a) Based on the equally likely criterion, what should be the decision of the firm for the next year? Based on the minimax regret criterion, what should be the decision of the firm for the next year? b)

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