Problem II (13 Points) Mike T recently started a practice in Landscape Design, which he will operate for 5 years. Over the three years, demand could take three different levels, which he estimates as the following Scenario 1 (40% chance): demand will be low (10,000 units) for each of the four years. Scenario 2 (30% chance): demand will be medium (14,000 units) for each of the four years. Scenario 3 (30% chance): demand will be high (20,000 units) for each of the four years. In order to run his landscaping business, Mike must first purchase an automated drafting system. There are three systems, each with different drafting capacities and associated purchase costs: 1) The Small System can handle up to the low demand Level, and costs $10,000. 2) The Medium System can handle up to the medium demand Level, and costs $14,000. 3) The Large System can handle up to the high demand Level, and costs $20,000. Mike is planning to charge his customers $0.50 per unit sold. The only type of costs he is considering are the fixed costs of purchasing the drafting system. For example, if Mike chooses the Medium System and demand is low, then the total revenue is 4 * 10,000 * $0.5 = $20,000, and the total cost is the purchase cost of the Medium System ($14,000). a) What is the best decision under the Maximax criterion? (1 point) b) What is the best decision under the Maximin criterion? (1 point) c) What is the best decision under the Minimax regret criterion? Please provide a regret table to justify your answer. (2 points) d) What is the best decision under the expected profit criterion? (5 points) e) If his objective is to maximize expected profit, what is the maximum Mike should be willing to pay a marketing research company to tell him which of the three scenarios (low, medium or high) will occur? (4 points) The time (in trumptes) formaly between 0 and storage capacity