Given the following conditional value table:

	States of Nature
Alternatives	Very Favorable Market	Average Market	Unfavorable Market
Build new plant	$250,000	$180,000	−$200,000
Subcontract	$270,000	$185,000	−$220,000
Overtime	$100,000	$50,000	−$12,000
Do Nothing	$0	$0	$0

a) Using the decision making under uncertainty with the criterion of Maximax, the appropriate decision will be ________ (subcontract, overtime, build new plant, do nothing)

The value of the return under this decision is $________

b) Using the decision making under uncertainty with the criterion of Maximin, the appropriate decision will be _______ (subcontract, overtime, build new plant, do nothing)

The value of the return under this decision is $________

c) Using the decision making under uncertainty with the criterion of Equally Likely, the appropriate decision will be _______ (subcontract, overtime, build new plant, do nothing)

The value of the return under this decision is $_________ (enter as whole number)

Answer rating: 100% (QA)

a Maximax criterion selects the alternative that maximizes the best possible outcome for each state ... View the full answer