A newly formed primary care group practice is seeking a location for its new

facility among five possible geographic sites. For this decision, it has been

decided to focus primarily on the profitability potential of each of the sites,

derived from market research data. Recent market research suggests three

possible demand scenarios for each site with the following profitability

estimates $($in $$1000\text{'}$s of dollars$)$:

Table A $-$ Expected Profits Under Three Demand Scenarios by Location

$)$

a$.$ What site is preferred under the maximin criterion?

b$.$ What site is preferred under the maximax criterion?

c$.$ What site is preferred under the minimax regret criterion?

d$.$ Based on the estimated probabilities in Table B above, what site is

preferred under the EMV criterion?

e$.$ Based on your responses to questions a$-$d$,$ identify the preferred site

for facility placement and briefly describe the justification for its

selection.