The manager of AGO Corporation must decide whether to hire $1,2,$ or $3$ new workers.

He estimates that net revenues will vary with how well taxpayers comply with the new

tax code.

State of nature

$($Degree of Compliance$)$

Decision $($strategy$)$

Number of workers

Low Medium High

$1505050$

$21006020$

$315070-10$

$1.$ If the manager uses the minimax regret approach, how many new workers will he

hire?

$2.$ If the manager is optimistic, how many new workers will he hire?

$3.$ If the investor is conservative, how many new workers will he hire?