$116$

ChApter $3$: Decision MAKing in HeAlth Care

b$.$ Which location would the pessimistic members of the executive

c$.$ What would be the location decision under minimax regret?

d$.$ Which location would the executive team choose under the La

An analyst has developed estimates, displayed in Table EX $3\mathrm{.}3,$ as demand trends at each of the locations under consideration in Exe

Table EX $3\mathrm{.}3$

$\backslash$table$[[,$Probability for Demand Trends$],[$Location$,$Increasing,Stable,Decrea$],[$Church Hill,$0\mathrm{.}15$ ralue,$0\mathrm{.}65,0\mathrm{.}2],[$Maymont$,0\mathrm{.}10,0\mathrm{.}60,0\mathrm{.}3],[$Riverside$,0\mathrm{.}20,0\mathrm{.}45,0.],[$West End,$0\mathrm{.}05,0\mathrm{.}70,0]]$

ing the data from Exercise $3\mathrm{.}2$ and the probabilities in Tab uld be selected under the expected value model?

CARE, a newly formed primary care group practice, is see ible sites. For these practices, which are largely unregula ion decisions are influenced mainly by market forces an key physicians. The data on potential profit for the den e shown in Table EX $3\mathrm{.}4.$

Table EX$3\mathrm{.}4$

$\backslash$table$[[,$Payoff: Profit in $$000$ s$)$ for $D$