Question: A fitness center is considering an expansion. Three proposals are being considered. The profits for three different customer responses for each proposal are shown in the table below:

Customer Response

High Moderate Low

Add New Pool 120,000 70,000 50,000

Add New Equipment 120,000 80,000 30,000

Add Child Center 100,000 80,000 60,000

What is the best decision for this problem when using

(a) The maximax criterion?

(b) The maximin criterion?

(c) The minimax regret criterion?

(d) The Hurwicz’s criterion if α = 0.25?