UNT Hurwicz Criterion Worksheet

A couple has just purchased a second home to remodel into a bed and breakfast. The table below contains their expected profit ($000s) the first year, depending on how many rooms they choose to remodel and demand. Construct an Excel spreadsheet to answer the following:

* ???For the information in the table, what decision would be made if the maximax criterion is used?

* ???For the information in the table, what decision would be made if the maximin criterion is used?

* ???For the information in the table, what decision would be made if the minimax regret criterion is used?

* ???For the information in the table, what decision would be made if the equal likelihood criterion is used?

* ???For the information in the table, what decision would be made if the Hurwicz criterion is used with?alpha = 0.75?

* ???For the information in the table, what is the expected value of each alternative? What is the best decision?

* ???Using the information in the table and TreePlan, draw a decision tree for the problem. Be sure to carefully label the branches of the tree and provide the value at each node.