A souvenir retailer has an opportunity to establish a new location inside a large airport. The annual returns will depend primarily on the size of the space she rents and if the economy will be favorable. The retailer has worked with the airport concession commission, and has projected the following possible annual earnings associated with renting a small, medium, large, or very large space:
Small - good economy 70000, fair economy 28000, poor economy -14000
Medium- good economy 112000 fair economy 42000 poor economy -28000
Large- good economy 140000 fair economy 42000 poor economy -56000
Very Large good economy 420000 fair economy 35000 poor economy -224000
A) What is the souvenir retailers maximax decision?
B) What is her Maximin decision?
C) What is her equally likely decision?
D) What is her criterion of realism decision, using a= .08?
E) What is her minimax regret decision?
USING EXCEL what are the answers?