Even though independent gasoline stations have been having a difficult time, Susan Solomon

has been thinking about starting her own independent gasoline station. Susan$$s problem is to

decide how large her station should be$.$ The annual returns will depend on both the size of her

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:

SIZE OF FIRST

STATION

GOOD

MARKET

$($$$)$

FAIR

MARKET

$($$$)$

POOR

MARKET

$($$$)$

Small $50,00020,000-10,000$

Medium $80,00030,000-20,000$

Large $100,00030,000-40,000$

Very large $300,00025,000-160,000$

For example, if Susan constructs a small station and the market is good, she will realize a profit

of $$50,000.$

a$)$ What is the aggressive $($optimistic$)$ strategy decision?

b$)$ What is the conservative $($pessimistic$)$ strategy decision?

c$)$ What is the opportunity loss strategy decision?