Determine the minimin and minimax regret

Reference no: EM1319990

Question: Microcomp is a United State based manufacturer of personal computers. It is planning to build a new manufacturing and distribution facility in South Korea, China, Taiwan, the Philippines, or Mexico. It will take approximately five years to build the necessary infrastructure [roads, etc.], construct the new facility, and put it into operation. The eventual cost of the facility will differ between countries and will even vary within countries depending on the financial, labor, and political climate, including monetary exchange rates. The company has estimated the facility cost [in $1,000,000s] in each country under three different future economic and political climates, as follows:

Economic/Political Climate

Country	Decline	Same	Improve
South Korea	21.7	19.1	15.2
China	19	18.5	17.6
Taiwan	19.2	17.1	14.9
Philippines	22.5	16.8	13.8
Mexico	25	21.2	12.5

Determine the best decision, using the following decision criteria.

[A] Hurwicz (alpha = .4)

[B] Equal likelihood

[C] Minimin

[D] Minimax

Reference no: EM1319990

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