Question 2 [2+2+2+3+4 = 13 marks] Xenon Software is bidding on three separate projects, P1, P2, and P3. They know that they will win exactly one of those projects, but they do not know which one. They also have no idea which of the projects is more likely. They need to buy some computer equipment to support the projects. The equipment choices, C1 through C4, are mutually exclusive; Xenon can only buy one of them. Due to lead times in purchasing, they need to buy the equipment before any contract is awarded. Unfortunately, certain choices of equipment are better suited to some projects than others. The following payoff matrix shows the net profit (in $1000s) for the various choices of computer equipment under each of the projects. Eqment P1 P2 P3

C1 70 80 90

C2 100 20 120

C3 100 90 60

C4 30 30 140 a. What equipment would be purchased based on the Laplace rule?

b. What equipment would be purchased based on the Maximin rule?

c. What equipment would be purchased based on the Maximax rule?

d. What equipment would be purchased based on the Hurwicz rule with = 0.2?

e. What equipment would be purchased based on the Minimax regret rule?