1. Below is a table of potential payoffs (profits in thousands of dollars per month) associated with three possible storage facility sizes (small, medium, large).
1. Below is a table of potential payoffs (profits in thousands of dollars per month) associated with three possible storage facility sizes (small, medium, large). Because the facility is being built near a university, the payoffs are expected to depend on the university's enrollment numbers. The decision makers have decided to classify future enrollments as "low" (fewer than 5,000 students). "moderate" (5,001-10,000 students), and "high" (greater than 10,000 students). Low Moderate | High Small 10 13 12 Medium 8 14 15 Large 6 7 18 A. If the decision makers subscribe to the Maximax approach, what size facility would they construct, and what would be the anticipated payoff amount (in thousands)? Size: Payoff: B. If the decision makers subscribe to the Maximin approach, what size facility would they construct, and what would be the anticipated payoff amount (in thousands)? Size Payoff: C. If the decision makers subscribe to the Laplace approach, what size facility would they construct, and what would be the anticipated payoff amount (in thousands)? Size Payoff: D. If the decision makers subscribe to the Minimax Regret approach, what size facility would they construct? Size
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