Please include an excel sheet showing calculations 3-24 A souvenir retailer has an opportunity to establisha new location inside a large airport. The annualreturns will depend primarily on the size of thespace she rents and if the economy will be favorable.The retailer has worked with the airport concessioncommission, and has projected the following possi-ble annual earnings associated with renting a small,medium, large, or very large space:SIZESmallMediumLargeVery largeGOODECONOMY$ 70,000$112,000$140,000$420,000FAIRECONOMY$28,000$42,000$42,000$35,000POORECONOMY-$ 14,000-$ 28,000-$ 56,000-$224,000(a) What is the souvenir retailer's maximax decision?(b) What is her maximin decision?(c) What is her equally likely decision?(d) What is her criterion of realism decision, usingα = 0.8?(e) What is her minimax regret decision?

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Answered: (a) What is the souvenir retailer's…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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(a) What is the souvenir retailer's maximax decision? (b) What is her maximin decision? (c) What is her equally likely decision?