Maximin method -decision making under uncertainty, Mathematics

Assignment Help:

Decision making under uncertainty

Various methods are used to make decision in circumstances whereas only the pay offs are identified and the likelihood of every state of nature are identified

a)      Maximin Method

This criterion is based upon the "conservative approach' to suppose that the worst possible is going to occur. The decision maker considers every strategy and locates the minimum pay off for each and then selects that alternative that maximizes the minimum payoff

Demonstration

Rank the products A, B and C applying the Maximin rule b using the given payoff table showing potential losses and profits which are expected to arise from launching these three products in three market situation

Pay off table in £ 000's

 

Boom condition

Steady state

Recession

Mini profits row minima

Product A

+8

1

-10

-10

Product B

-2

+6

+12

-2

Product C

+16

0

-26

-26

 

In above table

Ranking the MAXIMIN rule = BAC

 


Related Discussions:- Maximin method -decision making under uncertainty

.., Ask quesLa proporción de empleados de una empresa que usan su auto para...

Ask quesLa proporción de empleados de una empresa que usan su auto para ir al trabajo es 5:16. Si hay un total de 800 empleados, diga la cantidad de autos que se espera que haya es

Polynomials, simplify the expression 3/5/64

simplify the expression 3/5/64

Find the Regular Grammar for the following Regular Expressio, Find the Regu...

Find the Regular Grammar for the following Regular Expression: a(a+b)*(ab*+ba*)b.

Problem solving, if you start a business and john creates 6 t shirts more t...

if you start a business and john creates 6 t shirts more than pedro and pedro four t shirts less than eva and between the three of then made 22 tshirts, how many t-shirts made each

A graph with a positive slope, A graph with a positive slope shows that the...

A graph with a positive slope shows that the variables depicted on the axes goes in the similar directions.

Draw the digraph for the partial order, 1. Consider the relation on A = {1,...

1. Consider the relation on A = {1, 2, 3, 4} with relation matrix: Assume that the rows and columns of the matrix refer to the elements of A in the order 1, 2, 3, 4. (a)

How much time does larry spend on his dog each day, Larry spends 3/4 hour t...

Larry spends 3/4 hour twice a day walking and playing with his dog. He also spends 1/6 hour twice a day feeding his dog. How much time does Larry spend on his dog each day? Add

Probability, TWO PERSONS A AND B AGREE TO MEET AT A PLACE BTWEEN 11 TO 12 N...

TWO PERSONS A AND B AGREE TO MEET AT A PLACE BTWEEN 11 TO 12 NOON.  THE FIRST ONE TOARRIVE WAITS FOR 20 MIN AND THEN LEAVE. IF THE TIME OF THIR ARRIVAL BE INDEPENDET AND AT RNDOM,T

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