Brooke Bentley, a student in business administration, is trying to decide which management science course to take next quarter—I, II, or III. “Steamboat” Fulton, “ Death” Ray, and “Sadistic” Scott are the three management science professors who teach the courses. Brooke does not know who will teach what course. Brooke can expect a different grade in each of the courses, depending on who teaches it next quarter, as shown in the following payoff table:                                                                           Professor                                     Course          Fulton                        Ray                 Scott                                          I                      B                             D                       D                                         II                      C                             B                       F                                         III                     F                             A                       C   Determine the best course to take next quarter, using the following criteria. a. Maximax b. Maximin

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Decision Theory in Operations Management

Decision theory, also known as the theory of choice, is a branch of statistics that deals with making decisions based on the probability of the occurrence of an event. The chief purpose of decision theory is to identify the best course of action for the company with maximum payoffs.