DECISION ANALYSIS PROBLEM

Use this information to answer the following questions.

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.

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 Laplace 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?