b) What is the maximax decision? Maximax decision is Very Large (gives highest possible return of $300,000 with good market) c) What is the maximin decision? Maximin decision is Small (gives highest minimum return of -$10,000 with poor market) d) What is the equally likely decision? Expected return (small) = (1/3)(50000) + (1/3)(20000) + (1/3)(-10000) = $20000 Expected return (medium) = (1/3)(80000) + (1/3)(30000) + (1/3)(-20000) = $30,000 Expected return (large) = (1/3)(100000) + (1/3)(30000) + (1/3)(-40000) = $30,000 Expected return (very large) = (1/3)(300000) + (1/3)(25000) + (1/3)(-160000) = $55,000