Sultan Al-EitaniisthemanagerofSaudiDrillingProducts,whichproducesavarietyofspecialtyvalvesfor oilfield equipment.Recentactivityintheoilfields hascauseddemandtoincreasedrastically,and decisionhasbeenmadetoopenanewmanufacturingfacility.

Threelocationsarebeingconsidered(Riyadh ,Dammam,Tabuk), andthesizeofthefacilitywouldnotbethesame ineachlocation.Thus,overtimemightbenecessary attimes.Thefollowingtablegivesthetotalmonthly Revenues(inSAR 1,000s)foreachpossiblelocationundereachdemandpossibility.

Theprobabilitiesforthe demandlevelshavebeendeterminedtobe20%for lowdemand,30%formediumdemand,and50%for highdemand.

Location	Demand is low	Demand is Medium	Demand is high
Riyadh	85	110	150
Dammam	90	100	120
Tabuk	110	120	130

Whichlocationwouldbeselectedbasedonthe optimistic criterion? Interpret.

Whichlocationwould be selected based on the pessimisticcriterion? Interpret

Considering the scenario of under risk decision making, which location will provide the optimal expected value? Interpret.