The owner of a van selling hot take-away food has to decide how many burgers to purchase for sale at a forthcoming outdoor concert.

The number of burgers sold will depend on the weather conditions and any unsold burgers will be thrown away at the end of the day.

The table below details the profit that would be earned for each possible outcome:

(i) If the van owner applies the maximin rule he will purchase:
(A) 1 000 burgers 

(B) 2 000 burgers 

(C) 3 000 burgers 

(D) 4 000 burgers 

(ii) If the van owner applies the minimax regret rule he will purchase:
(A) 1 000 burgers 

(B) 2 000 burgers 

(C) 3 000 burgers 

(D) 4 000 burgers

Transcribed Image Text:

Number of burgers purchased Weather 1000 2000 3000 4000 Bad $1000 $0 ($1000) ($3,000) Average $3000 $6000 $7000 $6000 Good $3000 $6000 $9.000 $12000