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Dave's local college football team is playing for the national championship in next month's bowl game, and he's thinking about having "We're number one" T-shirts imprinted in honor of the team. It's too late to get the shirts before game day, but if he orders today, he can get them within a few days after the game.
The shirts must be ordered in multiples of 1000, and Dave has estimated the amount of profit he will make for possible outcomes of the game.
Given the following payoff table, what will Dave do if he uses the maximin criterion? The maximax criterion? The minimax regret criterion?
Wins Loses Ties
Order no shirts $0.00 $0.00 $0.00
Order 1000 shirts $800.00 -$200.00 $200.00
Order 2000 shirts $1,600.00 -$400.00 $300.00
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