Decision Making Problem (Questions 32 - 33): Intro

The manager of a construction company must decide whether to build single family homes, apartments, or condominiums. Profits (in thousands of dollars) are given in the following table and depend on various possible population trends (declining, stable, growing).

Payoff table (in thousands of dollars):

		Population
	Declining	Stable	Growing
Single Family Homes	220	80	75
Apartments	85	175	100
Condominiums	30	90	240

part 1

What would a decision maker do who follows the maximax decision rule?

part 2

What would a decision maker do who wants to minimize the maximum opportunity losses? (