"Silicon Dynamics has developed a new computer chip that will enable it to begin producing and marketing a personal computer if it so desires. Alternatively, it can sell the rights to the computer chip for $15 million. If the company chooses to build computers, the profitability of the venture depends upon the company's ability to market the computer during the first year. It has sufficient access to retail outlets that it can guarantee sales of 10,000 computers. On the other hand, if this computer catches on, the company can sell 100,000 machines. For analysis purposes, these two levels of sales are taken to be the two possible outcomes of marketing the computer, but it is unclear what their prior probabilities are. The cost of setting up the assembly line is $6 million. The difference between the selling price and the variable cost of each computer is $600.After developing the payoff table, determine which decision alternative should be chosen under each of the following criteria.

a) If Silicon Dynamics decides to go with optimistic approach decision criterion, determine which decision alternative should be chosen? Justify and show your work/calculations.

b) if Silicon Dynamics decides to go with conservative approach decision criterion, determine which decision alternative should be chosen? Justify and show your work/calculations.

c) If Silicon Dynamics decides to minimize the regret, determine which decision alternative should be chosen? Justify and show your work/calculations.