valt Using the decision making under uncertainty with the criterion of Maximax This method finds an alternative that maximizes the maximum outcome for every alternative. First, we find the maximum outcome within every alternative, and then we pick the alternative with the maximum number Firstly identify the Maximum Payoff for each alternative. Maximum payoff for alternative Build new plant = $200,000 Maximum payoff for alternative Subcontract = $120,000 Maximum payoff for alternative Overtime = $80,000 Maximum for payoff alternative Do Nothing = $0 Using the decision making under uncertainty with the criterion of Maximax alt Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be Build new plant The value of the return under this decision is $220,000 Using the decision making under uncertainty with the criterior of Maximin This method finds the alternative that maximizes the minimum outcome for every alternative. First, we find the minimum outcome within every alternative, and then we pick the alternative with the maximum number Firstly identify the Minimum Payoff for each alternative. Minimum payoff for alternative Build new plant = - $100,000 PE all This method finds the alternative that maximizes the minimum outcome for every alternative. First, we find the minimum outcome within every alternative, and then we pick the alternative with the maximum number Firstly identify the Minimum Payoff for each alternative. Minimum payoff for alternative Build new plant - - $100,000 Minimum payoff for alternative Subcontract - - $10.000 Minimum payoff for alternative Overtime = - $5,000 Minimum payoff for alternative Do Nothing - $0 Using the decision making under uncertainty with the criterion of Maximin The appropriate decision will be Do Nothing APE vall The appropriate decision will be Do Nothing The value of the return under this decision is o Using the decision making under uncertainty with the criterion of Equally Likely This method finds the alternative with the highest average outcome. First, we calculate the average outcome for every alternative, which is the sum of all outcomes divided by the number of outcomes. We then pick the alternative with the maximum number. Firstly determine the Average Payoff for each alternative. Average payoff for alternative Build new plant = $90,000 Average payoff for alternative Subcontract = $60,000 The vali Firstly determine the Average Payolt for each alternative. Average payoff for alternative Build new plant = $90,000 Average payoff for alternative Subcontract = $60,000 Average payoff for alternative Overtime = $40,000 Average payoff for alternative Do Nothing = $0 Using the decision making under uncertainty with the criterion of Equally Likely The appropriate decision will be Build new plant The value of the return under this decision is (response should be rounded to nearest whole number) Alternatives Build new plant Subcontract Overtime Do Nothing Very Favorable Market $350,000 $180,000 $110,000 States of Nature Average Market $240,000 $90,000 $60,000 $0 Unfavorable -Market - $300,000 - $20,000 - $10,000 $0 $0