Practice Question Two:

Today's Electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Phyllis Weinberger, who is responsible for advising the president of Today's Electronics on electronic manufacturing equipment, has developed the following table concerning a proposed facility:

Profit $($$$)$

Strong Market Fair Market Poor Market

Large Facility $550,000110,000-310,000$

Medium sized Facility $300,000129,000-100,000$

Small Facility $200,000100,000-32,000$

No Facility $000$

Use this chart to practice the $5$ Criterion for Making Decisions under Uncertainty

Show Work and Selections by highlighting the best alternative for each of the $5$ techniques. Maximax, Maximim, Hurwicz Realism $($use alpha $=\mathrm{.}7),$ LaPlace, and Minimax Regret.

Then, using the following probabilities to calculate the EMV, EOL, and EVPI: $30\%$ strong market, $50\%$ fair market, and $20\%$ poor market.