Even though independent gasoline stations have been having a difficult time, Susan Solomon has been thinking about starting an independent gasoline station. Susan$$s problem is to decide how large the station should be$.$ The annual returns will depend on both the size of the station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Susan developed the following table: Q

SIZE OF FIRST STATION GOOD MARKET $($$$)$ FAIR MARKET $($$$)$ POOR MARKET $($$$)$

Small

$50,000$

$20,000$

$$

$10,000$

Medium

$80,000$

$30,000$

$$

$20,000$

Large

$100,000$

$30,000$

$$

$40,000$

Very large

$300,000$

$25,000$

$$

$160,000$

For example, if Susan constructs a small station and the market is good, Susan will realize a profit of $$50,000.$

Develop a decision table for this decision.

What is the maximax decision?

What is the maximin decision?

What is the equally likely decision?

What is the criterion of realism decision? Use an

$$

value of $0\mathrm{.}8.$

Develop an opportunity loss table.

What is the minimax regret decision?