p1-3 An investor is to purchase one of three types of real estate, as illustrated in Figure below. Theinvestor must decide among an apartment building, an office building, and a warehouse. Thefuture states of nature that wi l1 determine how much profit the investor will make are goodeconomic conditions and poor economic conditions. The profits that will result from eachdecision in the event of each state of nature are shown in Table below:States of NatureDecisionGOOD ECONOMICPOOR ECONOMIC(Purchase)CONDITIONSCONDITIONS$ 50,000Apartment buildingOffice building$ 30,000- 40,000100,000Warehouse30,00010,000a) Find the optimal act using Maxi Max criteriab) Find the optimal act using Mini Max criteriac) Find the optimal act using Maxi Min criteriad) Fi nd the optimal act using Min Max regret table

Decision making under uncertainty indicating the different criteria without considering the…

Answered: a) Find the optimal act using Maxi Max…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.4: The Precision Tree Add-in

Problem 9P

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a) Find the optimal act using Maxi Max criteria b) Find the optimal act using Mini Max criteria c) Find the optimal act using Maxi Min criteria