Question: Stevie Stone, a bellhop at the Royal Sundown Hotel in Atlanta, has been offered a management position. Although accepting the offer would assure him a job if there was a recession, if good economic conditions prevailed, he would actually make less money as a manager than as a bellhop (because of the large tips he gets as a bellhop).His salary during the next 5 years for each job, given each future economic condition, is shown in the following payoff table:

Economic Conditions

Decision Good Recession

Bellhop $120,000 $60,000

Manager 85,000 85,000

Select the best decision, using the following decision criteria.

a. Minimax regret

c. Equal likelihood