Problem $1$: $(25)$

Given: A developer has $100$ million dollars $($$M$)$ to invest in one of four projects:

Recreation center

Condominiums

Amusement Park

Urban renewal

The success of each project depends on the state of the economy over the next $20$ years. The

table below shows the payoff matrix for each course of action and State of the economy.

Find: The developer has hired you as a management consultant to recommend an appropriate

strategy. Describe how you would make decisions under the uncertain climate conditions using

$($a$)$ Maximax, $($b$)$ Maximin, $($c$)$ Minimax regret, $($d$)$ Laplace, and $($e$)$ Hurwicz $(=\mathrm{.}7,=\mathrm{.}3)$ criteria.

$(5$ pts$.$ Each$)$