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GRAPHICAL METHOD
Graphical methods can be used in games with no saddle points and having pay off m X 2 or 2 X n matrix.The aim is to substitute a much simpler 2 X 2 matrix for the original m X 2 or 2 X m matrix.
Example:Establish the optimum strategies and the value of the game from the following payoff matrix game.
Draw two vertical axes and plot two payoffs corresponding to each of the five columns. The pay off numbers in the first row is plotted on Axis I and those in second rows on Axis II.
Thus the two pay off numbers 6 and 3 in the first column are shown respectively by point A on Axis I and point B on Axis II.Join the corresponding pay off numbers on Axis I and Axis II by straight lines.On the two intersecting lines at the very bottom, thicken them from below up to the point of intersection, i.e. utmost point on the boundary.The thick lines on the graph KT and LT meet at T
The two lines passing through T, identify the two critical moves of Y which combined with X, yield the following 2 X 2 matrix.
Cascade Water Company (CWC) currently has 30 000 shares of common stock outstanding, trading at a price of R42 per share.
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The least-cost method The process is described as follows: Assign as much as possible to the variable with the least unit cost in the whole tableau. (Ties are broken randomly).
Select the cost driver(s): This might also be termed to as independent, explanatory or predictor variable. A cost driver can be stated as any factor whose change causes a chang
When the customers of the company are spread over broad geographical areas then in place of a particular collection centre the company opens collection centres at the regional stag
Participative Budgets In this approach to budgeting, budgets are developed by lower level managers who then submit them to their superiors. The budgets depend on the lower level
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