Use This Information to Answer the Following Questions -Refer to the Information Above

question 47

Essay

Use this information to answer the following questions.
ABC Inc.must make a decision on its current capacity for next year.Estimated profits (in $000s)based on next year's demand are shown in the table below.
$$\begin{array}{l}\text { Next Year's Demand }\\\begin{array} { l l l } \text { Alternative } & \text { Low } & \text { High } \\\hline \text { Expand } & \$ 100 & \$ 200 \\\text { Subcontract } & \$ 50 & \$ 120 \\\text { Do Nothing } & \$ 40 & \$ 50\end{array}\end{array}$$
-Refer to the information above.
a.Which alternative should be chosen based on the maximax criterion?
b.Which alternative should be chosen based on the maximin criterion?
c.Which alternative should be chosen based on the Lapalce criterion?
d.Which alternative should be chosen based on criterion of realism with alpha = 0.7?
e.Which alternative should be chosen based on the minimax regret criterion?

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Definitions:

Rayon

A semi-synthetic fiber made from regenerated cellulose, used in a wide variety of textiles and clothing.

Carboxylic Acid

Organic acids characterized by the presence of at least one carboxyl group, playing significant roles in biochemistry and industry.

Amine End

The part of an amine molecule where the nitrogen atom is located, often involved in bonding due to its lone pair of electrons.

Asn

A symbol representing the amino acid asparagine, which is crucial in the biosynthesis of proteins.