Ayush Pharmaceuticals, an Indian manufacturer of health-care products, is planning to expand its capacity to produce a new line of ayurvedic and herbal products. Nevertheless, the president of the company, Girija, is unsure about the nature of demand for this new product line. She is considering three possible capacity alternatives: Do nothing, expand the company€™s existing plant, or subcontract the production of the products. The estimated profits (in $) for the three alternatives under three different demand scenarios are provided in Table F.18. What decision would Girija select if the decision is made using:

1. The Laplace criterion
2. The maximin criterion
3. The maximax criterion
4. Hurwicz criterion (α = 0.6)
5. The minimax regret

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State of Nature Decision Alternative Do nothing Expand Subcontract Medium Demand Low Demand High Demand $ 40,000 $ 60,000 $80,000 $160,000 -$30,000 $100,000 $10,000 $70,000 $100,000