Math Problem Solver

Nicanor is a rice trader and miller. He plans to expand his rice trading operation to other municipalities and is confronted with the problem of whether to construct a large or small milling plant. In a favorable market, Nicanor thinks that the conditional profit of a large milling plant is P400,000. If the market is unfavorable, the venture will sustain a loss of P250,000. However, if Nicanor decides to construct a small milling plant, he expects a conditional profit of P160,000 if the market is favorable and sustain a net loss of P90,000 if the market is not favorable. Nicanor will not have any conditional profit or loss if he does neither. The coefficient of realism is equal to 0.85.

Using a decision or opportunity loss table, compute the conditional outcome and make a decision under the following criteria:

1. Maximax

2. Maximin

3. Equally Likely

4. Criterion of realism

5. Minimax