Federated Electronics, Ltd., manufactures display screens and monitors for computers and televisions, which it sells to companies around the world. It wants to construct a new

warehouse and distribution center in Asia to serve emerg- ing markets there. It has identified potential sites in the port

cities of Shanghai, Singapore, Pusan, Kaohsiung, and Hong Kong and has estimated the possible revenues for each (minus construction costs which are higher in some cities like Hong Kong). At each site the projected revenues are

primarily based on these factors, (1) the economic condi- tions at the port including the projected traffic, infrastruc- ture, labor rates and availability; and expansion and

modernization; and (2) the future government situation which includes the political stability, fees, tariffs, duties, and trade regulations. Following is a payoff table that shows the projected revenues (in $ billions) for six years

given the four possible combinations for positive and nega- tive port and government conditions:Determine the port city Federated should select for its new distribution center using the following decision criteria: a. Maximax b. Maximin c. Equal likelihood d. Hurwicz ( .55)

Port Port Port Port Negative/ Negative/ Positive/ Positive/ Government Government Government Government Port Negative Positive Negative Positive Shanghai $0.271 $0.437 $0.523 $1.08 Singapore 0.164 0.329 0.441 0.873 Pusan 0.119 0.526 0.337 0.732 Kaoshiung 0.235 0.522 0.226 1.116 Hong Kong 0.317 0.256 0.285 1.653