Use this information to answer the following questions.
ABC Inc.must make a decision on its current capacity for next year.Estimated profits (in $000s)based on next year's demand are shown in the table below.
$$\begin{array}{l}
\text { Next Year's Demand }\
\begin{array} { l l l }
\text { Alternative } & \text { Low } & \text { High } \
\hline \text { Expand } & \$ 100 & \$ 200 \
\text { Subcontract } & \$ 50 & \$ 120 \
\text { Do Nothing } & \$ 40 & \$ 50
\end{array}
\end{array}$$
-Refer to the information above.
a.Which alternative should be chosen based on the maximax criterion?
b.Which alternative should be chosen based on the maximin criterion?
c.Which alternative should be chosen based on the Lapalce criterion?
d.Which alternative should be chosen based on criterion of realism with alpha = 0.7?
e.Which alternative should be chosen based on the minimax regret criterion?

Question

Use this information to answer the following questions.
ABC Inc.must make a decision on its current capacity for next year.Estimated profits (in $000s)based on next year's demand are shown in the table below.
 $$\begin{array}{l}
\text { Next Year's Demand }\
\begin{array} { l l l } 
\text { Alternative } & \text { Low } & \text { High } \
\hline \text { Expand } & \$ 100 & \$ 200 \
\text { Subcontract } & \$ 50 & \$ 120 \
\text { Do Nothing } & \$ 40 & \$ 50
\end{array}
\end{array}$$
-Refer to the information above.
a.Which alternative should be chosen based on the maximax criterion?
b.Which alternative should be chosen based on the maximin criterion?
c.Which alternative should be chosen based on the Lapalce criterion?
d.Which alternative should be chosen based on criterion of realism with alpha = 0.7?
e.Which alternative should be chosen based on the minimax regret criterion?

Quizplus · Accepted Answer

The Answer of Use this information to answer the following questions.
ABC Inc.must make a decision on its current capacity for next year.Estimated profits (in $000s)based on next year's demand are shown in the table below.
 $$\begin{array}{l}
\text { Next Year's Demand }\
\begin{array} { l l l } 
\text { Alternative } & \text { Low } & \text { High } \
\hline \text { Expand } & \$ 100 & \$ 200 \
\text { Subcontract } & \$ 50 & \$ 120 \
\text { Do Nothing } & \$ 40 & \$ 50
\end{array}
\end{array}$$
-Refer to the information above.
a.Which alternative should be chosen based on the maximax criterion?
b.Which alternative should be chosen based on the maximin criterion?
c.Which alternative should be chosen based on the Lapalce criterion?
d.Which alternative should be chosen based on criterion of realism with alpha = 0.7?
e.Which alternative should be chosen based on the minimax regret criterion?

Use This Information to Answer the Following Questions -Refer to the Information Above