BuildRite construction has received favorable publicity from

Build-Rite construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be unpredictable, so Build

Solution

This is the table given.

For maximax he has to get maximum

Hence we take -250000 as 0 and adjust the entries

Hence best decision is the one which gives maximum i.e. Hire at high rates.

Maxi min

WE take the least one from the above i.e. Hire at low.

For equally likely the total expected value for

are -100000, 330000, 1340000

Hence High is good

For minimax regret loss should be the minimum.

For that we take base as highest i.e. 625000 and subtract everything from 625000

As loss is minimum in high that also hire, that is hired.