The owner of the store of Auckland New Zealand Company must decide among building a mega centre store building 5 new stores or

Question

The owner of the store of Auckland New Zealand Company must decide among building a mega centre store building 5 new stores or leasing 10 of their locations to another company The profit that will result from each alternative will be determined by whether material costs remain stable increase moderately or increase significantly In the payoff table below the estimated profits losses are given in thousands Stable 1820 Material Costs Mega Centre ecision New Stores Leasing termine the best decision using the Maximax decision criterion 2100 850 Moderate Increase 1020 500 950 O Decision New Stores based on 2500 max 1820 2500 1050 O Decision Stable based on 2100 max 2100 1020 1050 O Decision New Stores based on 2100 max 1820 2100 1050 O Decision Leasing based on 2850 max 2660 100 2850 Significant Increase 180 2500 1050

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