A small manufacturing company has in recent years encountered the problem of not being

able to meet the increased demand for its products. The director of the company has to

decide now what to do to meet the demand next year. The calculation of profits for each

possible future situation is shown in the table below

Issues:

What should be the choice based on the following criteria:

$($a$)$ MAXIMIN

$($b$)$ MAXIMAX

$($c$)$ LAPLACE

$($d$)$ MINIMAX opportunity cost

Note: Profit is in thousands