What is the best decision using maximax

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Reference no: EM133655032

Jones Inc. needs to make a decision under uncertainty. Given the information below evaluate their options. Alternatives Favourable market Average market Unfavourable market Large machine $ 137,500 $ 50,000 $ -75,000 Small machine $ 100,000 $ 30,000 $ -5,000 Outsource $ 50,000 $ 20,000 $ -500 Do nothing $ 0 $ 0 $ 0

a) What is the best decision using maximax?

b) What is the best decision using maximin?

c) What is the best decision using equally likely?

Reference no: EM133655032

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