Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 23

Stevie Stone, a bellhop at the Royal Sundown Hotel in Atlanta, has been offered a management position. Although accepting the offer would assure him a job if there was a recession, if good economic conditions prevailed, he would actually make less money as a manager than as a bellhop (because of the large tips he gets as a bellhop). His salary during the next 5 years for each job, given each future economic condition, is shown in the following payoff table:
Select the best decision, using the following decision criteria.
a. Minimax regret
b. Hurwicz ( =.4)
c. Equal likelihood