Please include an excel sheet showing calculations 3-24 A souvenir retailer has an opportunity to establisha new location inside a large airport. The annualreturns will depend primarily on the size of thespace she rents and if the economy will be favorable.The retailer has worked with the airport concessioncommission, and has projected the following possi-ble annual earnings associated with renting a small,medium, large, or very large space:SIZESmallMediumLargeVery largeGOODECONOMY$ 70,000$112,000$140,000$420,000FAIRECONOMY$28,000$42,000$42,000$35,000POORECONOMY-$ 14,000-$ 28,000-$ 56,000-$224,000(a) What is the souvenir retailer's maximax decision?(b) What is her maximin decision?(c) What is her equally likely decision?(d) What is her criterion of realism decision, usingα = 0.8?(e) What is her minimax regret decision?

As per Bartleby guidelines, we can only solve the first three subparts of one question at a…

Answered: (a) What is the souvenir retailer's…

(a) What is the souvenir retailer's maximax decision? (b) What is her maximin decision? (c) What is her equally likely decision?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

Please include an excel sheet showing calculations

3-24 A souvenir retailer has an opportunity to establish
a new location inside a large airport. The annual
returns will depend primarily on the size of the
space she rents and if the economy will be favorable.
The retailer has worked with the airport concession
commission, and has projected the following possi-
ble annual earnings associated with renting a small,
medium, large, or very large space:
SIZE
Small
Medium
Large
Very large
GOOD
ECONOMY
$ 70,000
$112,000
$140,000
$420,000
FAIR
ECONOMY
$28,000
$42,000
$42,000
$35,000
POOR
ECONOMY
-$ 14,000
-$ 28,000
-$ 56,000
-$224,000
(a) What is the souvenir retailer's maximax decision?
(b) What is her maximin decision?
(c) What is her equally likely decision?
(d) What is her criterion of realism decision, using
α = 0.8?
(e) What is her minimax regret decision?

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