The managerial team of Western Union money transfer is considering the possibility of opening another outlet in the The Bahamas.The decision will be based on the location of the outlet.Three islands: Freeport, Nassau and Bimini were considered marketable.After careful analysis the team has developed the following payoff table.

Outcomes of the market

Alternatives Good Average Poor

Freeport $60,000 $38,000 ($22,000)

Nassau $42,000 $29,000 ($5,000)

Bimini $35,000 $24,000 $7,000

Probability 0.3 0.4 0.3

Use the following decision criteria to determine the best alternative under:

(i).Maximin Criterion(2 marks)

(ii).Maximax Criterion(2 marks)

(iii).The expected value criterion(7 marks)

(iv).Laplace (equal probability) Criterion(7 marks)