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Question: Microcomp is a United State based manufacturer of personal computers. It is planning to build a new manufacturing and distribution facility in South Korea, China, Taiwan, the Philippines, or Mexico. It will take approximately five years to build the necessary infrastructure [roads, etc.], construct the new facility, and put it into operation. The eventual cost of the facility will differ between countries and will even vary within countries depending on the financial, labor, and political climate, including monetary exchange rates. The company has estimated the facility cost [in $1,000,000s] in each country under three different future economic and political climates, as follows:
Economic/Political Climate
Country
Decline
Same
Improve
South Korea
21.7
19.1
15.2
China
19
18.5
17.6
Taiwan
19.2
17.1
14.9
Philippines
22.5
16.8
13.8
Mexico
25
21.2
12.5
Determine the best decision, using the following decision criteria.
[A] Hurwicz (alpha = .4)
[B] Equal likelihood
[C] Minimin
[D] Minimax
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