The Campus Bookstore at East Tennessee State University must decide how many economics textbooks to order for the next semester’s class. The bookstore believes that either seven eight, nine, or ten...

The Campus Bookstore at East Tennessee State University must decide how many economics textbooks to order for the next semester’s class. The bookstore believes that either seven eight, nine, or ten sections of the course will be offered next semester; each section contains 40 students. The publisher is offering bookstores a discount if they place their orders early. If the bookstore orders too few texts and runs out, the publisher will air express additional books at the bookstore’s expense. If it orders too many texts, the store can return unsold texts to the publisher for a partial credit. The bookstore is considering ordering either 280, 320, 360, or 400 texts in order to get the discount. Taking into account the discounts, air express expenses, and credits for returned texts, the bookstore manager estimates the following resulting profits.

a. What is the optimal decision if the bookstore manager uses the maximax criterion?

b. What is the optimal decision if the bookstore manager uses the maximin criterion?

 c. What is the optimal decision if the bookstore manager uses the minimax regret criterion?