Section $1\mathrm{.}5\mathrm{.}5$S

The operations manager for a well$-$drilling company must recommend whether to build a new

facility, expand his existing one, or do nothing. He estimates that long$-$run profits $($in $$000)$ will vary

with the amount of precipitation $($rainfall$)$ as follows:

If he uses the maximax criterion, which alternative will he decide to select?

expand

either do nothing or

expand