1. Your neighbor Mr. Rodgers has run a business that makes and sells industrial refrigerators. To deal with more intense competition he is thinking to buy a new type of refrigerator, either a TagmayPlus, a Marker High, or a ElecSpecial. His marketing group has determined that either a favorable market or an unfavorable market are the only reasonable outcomes. If he purchases a TagmayPlus and the market is favorable he'll realize a profit of $400,000, but lose $250,000 if the market is unfavorable. Purchasing a Marker High will generate payoffs of S350,000 or -$150,000, whether the market is favorable or unfavorable, respectively. However, if he buys a ElecSpecial he stands to gain a profit of 85,000 but suffer a loss of $27.000 depending on the market. (a) He is generally an optimistic decision maker, so what decision criterion should he use, and what alternative is best with this criterion? (b) His brother, however, is a finance person who has a pessimistic attitude about the business of industrial refrigerators. What decision criterion should he use and what alternative will he select? (c) A recent issue of The American Consumer forecasts a favorable market has a chance of occurrence of 40%, while the chance of an unfavorable market is What decision criterion now should be used and what is the resulting optimal solution