Burger Prince Restaurant is contemplating opening a new

restaurant on Main Street. It has three different layouts, each with a

different seating capacity. Burger Prince estimates that the average

number of customers per hour will be 80, 100, or 120. The payoff table

for the three models is as follows:

Average number of customers per hour

S1 = 80

S2 = 100

S3= 120

MODEL A: $10,000 $15,000 $14,000

MODEL B: $8,000 $18,000 $12,000

MODEL C: $6,000 $16,000 $21,000

1. Develop consruct solutions for Maximax and Maximin and Minimax Regret appoaches and state the selected strategy in each case

2. The probability estimates for different demand rates (customers per hour) given in the following table.

Customers Per Hour || Probability

S1=80 || 0.4

s2=100 || 0.2

S3=120 || 0.4

3. Find Expected Value of Perfect Information EVPI