Expected value approach to determine optimal strategy

Assignment Help Operation Management

Reference no: EM132223432

A decision maker faced with four decision alternatives and four states of nature develops the following profit payoff table. States of nature Decision alternative S_1 S_2 S_3 S_4 d_1 14 9 10 5 d_2 11 10 8 7 d_3 9 10 10 11 d_4 8 10 11 13 (a) Define and use the average payoff strategy to choose the best decision. (b) Define and use the aggressive strategy to choose the best decision. (c) Define and use the conservative strategy to choose the best decision. (d) Define and use the opportunity loss strategy to make the best decision. (e) Suppose the decision maker obtains information that enables the following probability assessments: P(s_1) = 0.5; P(s_2) = 0.2; P(s_3) = 0.2; and P(s_4) = 0.1. Define and use the expected value approach to determine the optimal strategy.

Reference no: EM132223432

Questions Cloud

Perform a key stakeholder analysis for an ASX listed company : HI6026 Audit, Assurance and Compliance Assignment, Holmes Institute, Australia. Perform a key stakeholder analysis for an ASX listed company

Describe one local business and one global business : Describe one local business and one global business. Discuss how their sustainability efforts are either hypocritical or morally responsible, and why.

Breakdowns over last four breakdowns in simulation run : Mayflower Manufacturing Company produces product on number of machines. What is average time between breakdowns over last four breakdowns in simulation run?

Conduct an appropriate research project : What skills are required to conduct an appropriate research project? What research skills are valuable for use in work environment?

Expected value approach to determine optimal strategy : Define and use the expected value approach to determine the optimal strategy.

Outsourcing agreements with firms with specialized services : Identify atleast two companies in different industries that have entered into outsourcing agreements with firms with specialized services.

Define a roadmap process to transform the vpn architecture : MN610 - Virtual Private Networks - Develop architectural VPN designs for small, medium and large businesses and corporations

Explain chose subject and why its exploring in humanities : HUMN 100 Final Project - In a 750-1200 word essay: Explain the subject you chose and why it's worth exploring in the Humanities

Regarding the recent financial crisis-government regulation : What is your perspective regarding the recent financial crisis and government regulation? Could more effective government regulation have prevented this crisis?

User Account

All Pages