Question: Problem # 1 T. Bone Puckett, has acquired a textile company on Marcus Garvey Drive and is considering the capacity of the plant to satisfy

Problem # 1

T. Bone Puckett, has acquired a textile company on Marcus Garvey Drive and is considering the capacity of the plant to satisfy future orders. Given the following conditional value table, determine the appropriate decision under uncertainty i.e., the decision maker does not know the probability of the outcomes using

Maximax
Maximin
Laplace (Equally Likely)
Minimax Regret

________________________________________________________________________

States of Nature

________________________________________

Very Favorable Average Unfavorable

Alternatives Market Market Market

Build new plant $350,000 $240,000 -$300,000

Subcontract $180,000 $ 90,000 -$ 20,000

Overtime $110,000 $ 60,000 -$ 10,000

Do nothing $ 0 $ 0 $ 0

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