Graphical method, Managerial Accounting

Assignment Help:

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.

24_formula1.jpg

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.

1050_formula2.jpg



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.

743_Formula3.jpg


Related Discussions:- Graphical method

State the debtors turnover ratio, Debtors turnover ratio( or receivables tu...

Debtors turnover ratio( or receivables turnover ratio) Meaning: this ratio establishes a relation ship between net credit sales and averages trade debtors.   Objective

How would you characterize the politics of food, Given the persistent probl...

Given the persistent problem with starvation in some parts of the world, and the anticipated population growth in developing nations, do we need genetically modified foods? Is it r

Account analysis-high low method-cost estimation method, Account analysis (...

Account analysis (Inspection of accounts) method: This method requires that departmental managers and the accountant inspect each item of expenditure within the accounts for s

Explain prerequisites of a sound variances analysis system, Prerequisites o...

Prerequisites of a sound variances analysis system A variance analysis system would be good enough in controlling costs and evaluation performances if the following requirement

Explain the product life cycle costing, Product life cycle costing It i...

Product life cycle costing It is an approach used to give a long term picture of product line profitability feedback on the effectiveness of life cycle planning and cost data t

The games economists play, THE GAMES ECONOMISTS PLAY It sounds like a s...

THE GAMES ECONOMISTS PLAY It sounds like a sports fan's dream.  In Stockholm on October 11th, three men share a $1m prize for their skill at analyzing games. They are not telev

Accounting Ratios, Explain TWO limitations of using accounting ratios to as...

Explain TWO limitations of using accounting ratios to assess the performance of a firm and suggest how each limitation may be improved

Absorption cost-variable cost-transfer pricing methods, Absorption cost ...

Absorption cost Absorption, or full cost systems, transfer the full cost of the supplying department to the receiving department. Where a profit is to be allowed to the supplyi

Explain the terms - maintenance and improvement, Explain the terms - mainte...

Explain the terms - maintenance and improvement Maintenance ; under the maintenance function, the management must first establish policies rules directives and standard operat

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd