Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 29

In Problem, the Bombers' management has determined the following probabilities of the occurrence of each future season outcome for each player:
Compute the expected value for each player and indicate which player the team should try to sign.
Problem
The Oakland Bombers professional basketball team just missed making the playoffs last season and believes it needs to sign only one very good free agent to make the playoffs next season. The team is considering four players: Barry Byrd, Rayneal O'Neil, Marvin Johnson, and Michael Gordan. Each player differs according to position, ability, and attractiveness to fans. The payoffs (in $1,000,000s) to the team for each player, based on the contract, profits from attendance, and team product sales for several different season outcomes, are provided in the following table:
Determine the best decision, using the following decision criteria.
a. Maximax
b. Maximin
c. Hurwicz ( =.60)
d. Equal likelihood