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help thank you Question 4 A company is considering expansion of its current facility to meet increasing demand. Their problem is to decide how large
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Question 4 A company is considering expansion of its current facility to meet increasing demand. Their problem is to decide how large the expansion should be. They have constructed the following payoff table to analyze their situation in order to produce good result. Alternative States of Nature High demand Low demand (RM) (RM) 800 000 - 500 000 Major expansion Minor expansion Do nothing 200 000 - 100 000 0 0 a. What is the best decision based on maximax criterion? (5 marks) b. What is the best decision based on maximin criterion? 15 marks c. Determine the best strategy using Equally Likely criterion. 15 marks d. Compute the criterion of realism decision and use a = 0.8. 15 marks e. What is the minimax regret decision? 15 marks Step by Step Solution
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