Question #2015760: op. man.


Question: The Go4Broke Company owns land that may have oil. Another company has offered to buy the land for $90,000, but Go4Broke is considering holding on to the land and doing its own drilling. If oil is found, the company’s expected profit will be $700,000; however, if the property happens to be dry, there will be a loss of $100,000 due to the drilling expenses.

Should Go4Broke or keep it and drill, if it makes its decision using the following criteria:

a) Maximin

b) Maximax

c) Minimax (Regret)

d) Equal Probabilities (Laplace)

Solution: The solution consists of 224 words (2 pages)
Deliverables: Word Document

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