Miles Diller, the owner of the athletic club The Muscle Toner, is planning to expand the size of the club to meet the growth in demand he anticipates. His options for expanding the facility are to do nothing, make a moderate expansion, make a large expansion, or build a second facility that’s bigger than the current one. There could be small, moderate, high, or no growth in demand. The net profits for the various combinations of alternatives and demand scenarios are shown in the payoff matrix in Table F.19.

Table F.19

What decisions would Miles select if he uses the Hurwicz (α = 0.4) and minimax regret decision criteria?