Use the following information to answer multiple$-$choice Questions $1$ to $10.$ An engineer develops a new product. Having made the product, he she has three choices. He she can either manufacture the product or allow someone else to make it and be paid on a rovalty basis, or altematively, he she can sell the rights to receive a lump sum.

The profit that can be expected depends on the level of sales with the corresponding probabilities, shown in the tabie QI below; in thousands of E$\text{'}$s$.$

$\backslash$table$[[,\backslash$table$[[$High Sales.$],[($Probability $=0\mathrm{.}2)]],$Medium Sales.,$\backslash$table$[[$Low Sales.$],[($Probability $=0\mathrm{.}3)]]],[$Manufacture$,160,80,-40],[$Take Royalties,$100,60,20],[$Sell all rights,$40,40,40]]$

Uaing the Maximax decision criterion the best decision is:

a$)$:Mnfacture

b$)$ Take Rovalties

c$)$ Sell all rights

d$)$ Manufacture, because it produces the highest average profit among the three options

Using the Maximin decisich criterion the best decinon is:

a$)$ Nanufacture

b$)$ Take Royalties

c$)$ Sell all rights

d$)$ Sell all rights, because its lowest profit is the highest amongst the three options

Using the Minimax decision criterion, the best decision is:

a$)$ Manufacture

b$)$ Take Royalties

c$)$ Sell all rights

d$)$ Take royalies, because it has the bighest opportunity loss

Using the Hurvics criterion and alpha equal to $0\mathrm{.}6,$ the best decision is:

a$)$ Manufacture

b$)$ Take Royalties

c$)$ Sell all rights

d$)$ Take royalties, because it produces the highest average profit among the options