Expected opportunity loss decision criterion, Financial Accounting

Assignment Help:

The construction manager for Acme, Inc. must decide whether to build single-family homes, apartments, or condominiums. She estimates annual profits will vary with the economy, as follows

Probabilities	30%	40%	30%
	*Weak Economy*	*Normal Economy*	*Strong Economy*
*Homes*	$191,000.	$86,000.	$65,000.
*Apartments*	$72,000.	$164,500.	$82,000.
*Condominiums*	$23,000.	$93,500.	$202,000.

REQUIREMENT:

Select the best strategy under:
1. The Maxi-Min decision criterion.
2. The Mini-Max Regret decision criterion.
3. The Expected Opportunity Loss decision criterion

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