Question: The owner of the Burger Doodle Restaurant is considering two ways to expand operations: open a drive-up window or serve breakfast. The increase in profits resulting from these proposed expansions depends on whether a competitor opens a franchise down the street. The possible profits from each expansion in operations, given both future competitive situations, are shown in the following payoff table:
|
Competitor Decision
|
Open
|
Not Open
|
|
Drive-up window
|
$ -6,000
|
$ 20,000
|
|
Breakfast
|
4,000
|
8,000
|
Choose the best decision, using the following decision criteria.
[A] Maximax
[B] Maximin