RXY International Sdn Bhd $($RISB$)$ is evaluating the future of its plant based on three alternative decisions: $(1)$ expand the plant and produce lightweight and high strength composite materials for possible sales to the military, a market with low local competitions; $(2)$ maintain the status quo at the plant, continuing current production mode with high local competition or $(3)$ sell the plant now. With high competitive conditions, expanding the plant will give RISB a net profit of RM$800,000.$ If the local competitive condition is low, the company will still make a net profit of RM$500,000.$ Maintaining the status quo will result in a net profit of RM$1,300,000$ in a low competitive condition, however, a net loss of RM$150,000$ will be encountered if the competitive condition is high. Selling the plant in either competitive condition will give a net profit of RM$320,000$ to the company.

a$.$ Discuss the differences between decision making under certainty, under risk, and under uncertainty in terms of information availability, predictability and decision criteria.

$[6$ marks$]$

b$.$ Evaluate the best decision for RISB using Maximax, Maximin and Equally Likely methods.

$[14$ marks$]$

c$.$ What would be the impact on the decision if there is a $70\%$ chance that highly competitive conditions will exist in the future?

$[5$ marks$]$