Question

1. Amy Maxwell is not sure about the possibility of a favorable market. She would like to determine:

1. The equally likely decision
2. The maximax decision
3. The maximin decision
4. The criterion of realism (Hurwicz)
5. The minimax regret decision

The problem data is summarized below and the Hurwicz criterion should be 0.7.

                                                Favorable Market                            Unfavorable Market

Probability                          .5                                                            .5

Alternative 1                      42,000                                                   -20,000

Alternative 2                      56,000                                                   -30,000

Alternative 3                      0                                                              0

Answer 1