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A local hot dog vender that works the downtown area has determined the following payoffs for 3 possible strategies. Strategy A is to locate at
A local hot dog vender that works the downtown area has determined the following payoffs for 3 possible strategies. Strategy A is to locate at one central outside location. Strategy B is to push the cart around to cover the entire downtown area. Strategy C is to locate inside one of the small shopping centers. The following table shows the money he will make for each strategy given the different states of nature. States of Nature Strategy
Rainy | Overcast | Sunny | |
A | 500 | 700 | 900 |
B | -150 | 500 | 1200 |
C | 920 | 400 | 100 |
The recommended strategy using the minimax regret criterion is
A A | ||
B | B | |
C | C | |
D | Cannot be determined from the available data |
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