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(iv) When x = -10, Q = - 25 - 400 = - 425, Q = - 80 - 290 = - 370. .. a, is the better act. (v) 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