Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 39

The owner of the Columbia Construction Company must decide between building a housing development, constructing a shopping center, and leasing all the company's equipment to another company. The profit that will result from each alternative will be determined by whether material costs remain stable or increase. The profit from each alternative, given the two possibilities for material costs, is shown in the following payoff table:
Determine the best decision, using the following decision criteria.
a. Maximax
b. Maximin
c. Minimax regret
d. Hurwicz ( =.2)
e. Equal likelihood