A small building contractor has recently experienced two successive years in which work opportunities exceed the firm capacity. The contractor must now make a decision on capacity for next year. Estimated profits under each of the two possible states of nature are as shown in the table below.

Which alternative should be selected if decision criteria are…????

a) Maximax?
b) Maximin?
c) Laplace?
d) Minimax regret?

next year demand
Alternative low high

Do nothing 50 60
Expand 20 80
Subcontract 40 70

(profit in thousands)