[enoch4955]

Those that used minimax and maximax rules would be correct under uncertainty. Also just calculating the profit ignoring the probabilities would also be right as it measures uncertainty about the outcome of the options. Risk relates to using probabilities and finding the expected value of the outcome. The choice of what options to take is not straight one and it will depend on the risk profile o the person taking the decision. Since the management are optimistic, maximax rule will be appropriate. Pessimistic person will use minimax rule. Also note that the calculation of Maximax or minimax will involve using the contribution ratio ignoring the probabilities of the outcome of the levels used. Hope this helps

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