In the Following Decision Problem, You Are Considering Two Business $\alpha=0.3$

Essay

In the following decision problem, you are considering two business opportunities at the end of your business education. One is a safe but less lucrative business (Bus-A) and the other a risky but attractive business (Bus-B). The expected five-year revenue differs significantly depending on boom, stagnation or recession in the national economy. The following table gives the payoff matrix and probabilities. At this time, you do not have reliable estimates of the probabilities of the economic conditions.

(A) What is the best decision using maximax criterion?
(B) What is the best decision using maximin criterion?
(C) What is the best decision using minimax regret criterion?
(D) What is the best decision using Hurwicz criterion with $\alpha=0.3$ ?