Given the following conditional value table, determine the appropriate decision under uncertainty using maximax, maximin, equally likely methods.

                                                                                                                                                     

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	States of Nature
Alternatives	Very Favorable Market	Average Market	Unfavorable Market
Large plant	$275,000	$100,000	minus−$150,000
Small plant	$200,000	$60,000	minus−$10,000
Overtime	$100,000	$40,000	minus−$1,000
Do nothing	$0	$0	$0

a) Using the maximax method, the appropriate decision is b) Using the maximin method, the appropriate decision is c) Using the equally likely method, the appropriate decision is

Answer rating: 100% (QA)

aMaximax Enter data in excel and take out the maximum of rows as shown B 1 alternatives very favoura... View the full answer