1.

- The owner of the Party City Toronto Company must decide among building a mega centre store, building 5 new stores, or leasing 10 of their locations to another company. The profit that will result from each alternative will be determined by whether material costs remain stable, increase moderately, or increase significantly. In the payoff table below the estimated profitsflosses are given in $thousands. Material Costs Significant Increase 1810 1030 430 _e-asing M ate rial Costs (bl Determine the best decision using the Opportunity Loss decision criterion. .. Decision: Leasing based on 3530 = max(1210,1450,3530} ~ Decision: Mega Centre based on 1210 = min{1210,1450,3530) ' Decision: Leasing based on 4060 = min(1650,4060,1540} .. Decision: New Stores based on min = 90