Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 68

A farmer in Iowa is considering either leasing some extra land or investing in savings certificates at the local bank. If weather conditions are good next year, the extra land will give the farmer an excellent harvest. However, if weather conditions are bad, the farmer will lose money. The savings certificates will result in the same return, regardless of the weather conditions. The return for each investment, given each type of weather condition, is shown in the following payoff table:
Select the best decision, using the following decision criteria:
a. Maximax
b. Maximin