Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 41

The Blue Sox American League baseball team is going to enter the free-agent market over the winter to sign a new starting pitcher. They are considering five prospects who will enter the free-agent market. All five pitchers are in their mid-20s, have been in the major leagues for approximately 5 years, and have been relatively successful. The team's general manager has compiled a lot of information about the pitchers from scouting reports and their playing histories since high school. He has developed a chart projecting how many wins each pitcher will likely have during the next 10 years, given three possible future states of nature: the pitchers will be relatively injury free, they will have a normal career with injuries, or they will have excessive injuries, as shown in the following payoff table:
Determine the best pitcher to sign, using the following decision criteria:
a. Maximax
b. Maximin
c. Equal likelihood
d. Hurwicz ( =.35)