(iv) When x = -10, Qa - 25 - 400 = -425, Q = -80 - 290 = - 370. .. az is the better act. (w) For x = - 10, the regret of the poor strategy a;= - 370 - (- 425) = 55. X=2 EXAMPLE 9.4-3 A steel manufacturing company is concerned with the possibility of a strike. It will cost an extra 20,000 to acquire an adequate stockpile. If there is a strike and the company has not stockpiled, management estimates an additional expense of * 60,000 on account of lost sales. Should the company stockpile or not if it is to use (i) Optimistic criterion (ii) Wald criterion (iii) Savage criterion (iv) Hurwicz criterion for a = 0,4 (v) Laplace criterion