UrbanEats is a popular restaurant brand known for its creati…
UrbanEats is a popular restaurant brand known for its creative street food. The company has been operating a single flagship location but now plans to expand across the city. As UrbanEats’ Operations Manager, you need to decide on an expansion strategy for the upcoming year. You have three expansion options: Small Expansion: Open one new location. Medium Expansion: Open two new locations. Large Expansion: Open five new locations. Depending on the market condition, whether the economy is flourishing, stable, or in recession, your expansion will result in a profit or loss. You must select your strategy before the market condition is known, and you must stick with it for the full year. The table below summarizes the profit or loss (in thousands of dollars) for each strategy under each market condition: Strategy Flourish Market Stable Market Recession Market Small Expansion +100 +50 -20 Medium Expansion +200 +60 -60 Large Expansion +350 +40 -150 Answer the following questions: What is the maximax strategy? Justify your answer. (5 points) What is the maximin strategy? Justify your answer. (5 points) Hint. Canvas allows you to draw tables; however, if you find it difficult during the exam, that is totally fine. You can simply explain your justification in words for all two questions A and B instead of drawing tables.