Question: Hello; I need help with this question. Please walk me through excel so I can follow along and learn how to do it accordingly. Thank
Hello; I need help with this question. Please walk me through excel so I can follow along and learn how to do it accordingly. Thank you
Chad Holms has been thinking about starting his own gasoline station. Chad has to decide on the size of the gas station. The annual profit 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 careful analysis, Chad developed the following table.
| Size of Gas Station | Good Market | Moderate Market | Poor Market | Maximum | Minimum | Equally Likely | Expected Value |
| Small | $270,000 | $150,000 | $60,000 | ||||
| Medium | $300,000 | $230,000 | $20,000 | ||||
| Large | $360,000 | $260,000 | -$150,000 | ||||
| Probability | 0.30 | 0.50 | 0.20 |
- Complete the above table and identify best decisions (choices) under Maximax, Maximin, Equally Likely, and Hurwicz criterion.
Maximax Decision: Maximax Profit:
Maximin Decision: Maximin Profit:
Equally Likely Decision: Equally Likely Profit:
Expected Value Decision: Expected Value Profit:
Minimax Regret Decision: Minimax Regret Profit:
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