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Solve the question below in excel spreadsheet A souvenir retailer has an opportunity to establish a new location inside a large airport

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Solve the question below in excel spreadsheet

A souvenir retailer has an opportunity to establish a new location inside a large airport. The annual returns will depend primarily on the size of the space she rent and if the economy will be favorable. The retailer has worked with the airport concession commission and has projected the following possible annual earnings associated with renting a small medium, large or very large space:   

 

SIZE             GOOD               FAIR                 POOR    

                  ECONOMY   ECONOMY     ECONOMY

Small           $70,000           $28,000          -$14,000

Medium       $112,000         $42,000          -$28,000

Large           $140,000         $42,000          -$56,000

Very large   $420,000         $35,000          -$221,000

 

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, using

 a=0.8

 

e)   What is her minimax regret decision