There are two outcomes: a good market and a bad market. , The decision table is presented below. There are four alternatives: do nothing, build a small plant, build a medium-size plant, and build a large plant. PAYOFFS Outcomes Alternatives Good market Bad market Do nothing $0 $0 Small Plant $30,000 ($10,000) Medium Plant $100,000 ($15,000) Large Plant $200,000 ($30,000) So you are to workout the Maximax, the Maximin, the Equally likely the Hurwicz based on a .11 probability and the regret using minimax. In words give the answers to these questions: What are your answers under: Answers Best payoff option for maximax is Common Stock Best payoff option for maximin is doing nothing Best payoff option for equally likely is Common Stock Best payoff option for Hurwicz is doing nothing Put a Bold Box around the word Outcomes Keep the Bad Market amounts in Red Ink Make the type style Ariel and Size 12 in Black There are two outcomes: a good market and a bad market. The decision table is presented below.There are four alternatives: do nothing, build a small plant, build a medium-size plant, and build a large plant.PAYOFFSAlternative: Good market$0Do nothingSmall PlantOutcomes$30,000Medium Pl$100,000Large Plant $200,000Bad marketSO($10,000)($15,000)($30,000)So you are to workout the Maximax, the Maximin, the Equally likely the Hurwicz based on a .11 probability and the regret using minimax.What are your answers under:AnswersIn words give the answers to these questions:Best payoff option for maximax is Common StockBest payoff option for maximin is doing nothingBest payoff option for equally likely is Common StockBest payoff option for Hurwicz is doing nothingPut a Bold Box around the word OutcomesKeep the Bad Market amounts in Red InkMake the type style Ariel and Size 12 in Black

Decision analysis is a systematic and quantitative approach used to evaluate complex decision…

Answered: There are two outcomes: a good market…

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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There are two outcomes: a good market and a bad market. , The decision table is presented below. There are four alternatives: do nothing, build a small plant, build a medium-size plant, and build a large plant. PAYOFFS Outcomes Alternatives Good market Bad market Do nothing $0 $0 Small Plant $30,000 ($10,000) Medium Plant $100,000 ($15,000) Large Plant $200,000 ($30,000) So you are to workout the Maximax, the Maximin, the Equally likely the Hurwicz based on a .11 probability and the regret using minimax. In words give the answers to these questions: What are your answers under: Answers Best payoff option for maximax is Common Stock Best payoff option for maximin is doing nothing Best payoff option for equally likely is Common Stock Best payoff option for Hurwicz is doing nothing Put a Bold Box around the word Outcomes Keep the Bad Market amounts in Red Ink Make the type style Ariel and Size 12 in Black