A machine shop owner is attempting to decide whether to purchase a new drill press, a lathe, or a grinder. The profit from each purchase will be determined by whether the company succeeds in getting a government military full contract, partial contract or no contract. The profit from each purchase associated with each contract outcome is shown in the following payoff table:

Purchase Full Contract Partial Contract No Contract

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Drill press $60,000 $40,000 $16,000

Lathe 40,000 30,000 24,000

Grinder 32,000 28,000 26,000

**Please do not use computer software, Please write out everything**

(c) What is the best decision using the minimax regret criterion? What is the regret for it?

(d) What is the best decision using the Hurwiczs criterion if = 0.6? What is the payoff for it?