Must be done for EXCEL

An Inventor develops a new product. Having made the product he has three choices of what to do:

Manufacture the product himself

Allow someone else to make it and be paid on a royalty basis

Sell the rights for a lump sum

The profit which can be expected depends on the level of Sales and is shown in the table below:

Pay off Table

	High Sales	Medium Sales	Low Sales
Manufacture	80	40	-20
Royalties	50	30	10
Sell	20	20	20

The probabilities associated with the level of sales are .2, .5 and .3 for high, medium and low sales respectfulls.

What is the best decision for the maximax rule?

The maxium rule?

The minimax regret rule?

Calculate the best decision using the expected monetary value.

Calculate the best decisions using the expected monetary loss criterior.