Question: The Weight Club (see Case Problem 1.4) is considering adding a new service facility among several possible alternatives including a child care center, a swimming

The Weight Club (see Case Problem 1.4) is considering adding a new service facility among several possible alternatives including a child care center, a swimming pool, new locker rooms and showers, a health-oriented food court, and a spa. The success of each alternative depends on their demand (i.e., new members who would join because of the new facility), which is uncertain. The following payoff table summarizes the returns (based on costs and increased enrollments) for each alternative service facility given three future levels of demand.

The Weight Club (see Case Problem 1.4) is considering adding

Determine the best decision for the club using the following criteria.
a. Maximax
b. Minimax
c. Hurwicz (α = .45)
d. Equallikelihood

Demand Service Facility Child care center Swimming pool New lockers and showers Food court Spa Poor Moderate igh 2,000 7,000 -31,000 19,000 6,000 25,000 $17,000 $27,000 $41,000 -75,000 26,000 71,000 57,000 87,000 32,000

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