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Three different designs are being considered for a new electronics product, and profits will depend on the combination of product design and market condition.
The following payoff table summarizes the decision situation, with amounts in millions of dollars. What decision will be made using the maximin criterion? The maximax criterion? The minimax regret criterion?
Market Condition
I
II
III
Design A
$25
$14
$6
Design B
$15
$16
$18
Design C
$5
$10
$40
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