Minimax regret decision
Given the following profit table determine the minimax regret decision.
States of Nature
Decision
S1
S2
S3
d1
-100
100
87
d2
20
45
-80
d3
34
-90
d4
10
d1 or d4
Expected delivery within 24 Hours
We are evaluating a project that costs $1.68 million, has a 5-year life, and has no salvage value. Assume depreciation is straight-line to zero over the life of the project. Sales are projected at 82,000 units per year.
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