Problem $3(10$ points$)$:

You are planning to travel on business in the near future for an entire week $(7$ days$).$ For this business trip you will need to rent a car. The car rental agency offers renter$$s insurance for an additional $$12$ per day. The average cost of a minor fender bender is $$1250,$ and the average cost of a more serious accident is $$13,000.$ Without the car renter$$s insurance you would be fully liable for these costs in the event of either type of accident.

First, develop a payoff table, and then answer which decision you should make under each of the strategies below:

Minimin$/$Maximax

Minimax$/$Maximin

Minimax Regret

Average Payoff Strategy

Hurwicz Criterion $(\backslash$alpha $=0\mathrm{.}9)$