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The owner of Wilson Sporting Goods must decide between commercializing three new tennis rackets. The profit that will result from each alternative will be determined

The owner of Wilson Sporting Goods must decide between commercializing three new tennis rackets. The profit that will result from each alternative will be determined by whether material costs remain stable or increase, as shown in the following payoff table:

Material Costs

Decision

Increase

Stable

Tennis Racket-Type 1

70

30

Tennis Racket-Type 2

105

20

Tennis Racket-Type 3

45

40

Determine the best decision, using the following decision criteria.

Maximax

Maximin

Minimax Regret

Probabilities of material cost stay stable with 0.7 chance and increase with 0.3 chance.

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