Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, whereas the advanced model is faster but costs more. Profitability will depend on future demand. The following table presents an estimate of profits over the next three years. Decision Basic model Advanced model Demand Volume Low $75,000 $50,000 Medium $100,000 $135,000 High $145,000 $220,000 Fill in the table below for maximum and minimum profit payoffs under each model. Round your answers to the nearest dollar Decision alternative Maximum Minimum Basic model Advanced model 5 Calculate the amounts foregone by not adopting the optimal course of action for each possible demand level. Determine the maximum opportunity cost for each model. Fill in the table below. If your answer is zero, enter "0" Round your answers to the nearest dollar. Opportunity Loss Matrix Decision alternative Low Future events Medium High Maximum Basic model Advanced model Given the uncertainty associated with the demand volume, and no other information to work with, what decision would you make? The aggressive strategy (maxomax) is to choose the basic model The conservative strategy (maximin) is to choose the advanced model The opportunity loss strategy is to choose the advanced model