D What is the best decision for the manufacturer using the maximin decision criterion? (3 marks) ") What is the best decision for the manufacturer using the minimax regret decision? (3 marks) i) What is the regret that is associated with the decision to acquire competitor when demand is low? (3 marks) iV) What is the best decision for the manufacturer using the equal likelihood criterion? (3 marks) Question 3 (10 marks) A manager wants to decide wether to build a small facilty or large facility. The scenario is given in Figure 1. If build the small facility, and the demand is low with probability of 0.4, the company will get $40,000. If the demand is high with probalibilty of 0.6, he has three choices; do nothing will earn $40,000, do overtime will earn $50,000 and expand will earn $55,000. On the otherhand if build the large facility, and demand is low, he has two options; do nothing and will loss $10,000, and cut prices, resulted in S50,000. Otherwise if the demand is high with probability of 0.6, the company will earn $70,000. Do the analysis wether a manager should build small or large facility. (10 marks) Low Demand (40) $4 Do Nothing Overtime Expand High Demand (.60) $5 $5 Do Nothing ($10 Low Demand (.40) High Demand (.60) Cut Prices $5 $7 Figure 1 Build Small Butld Large