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

Trig, cot functions

cot functions

Fact of the wronskian method, Given two functions f(x) and g(x) which are d...

Given two functions f(x) and g(x) which are differentiable on some interval I  (1) If W (f,g) (x 0 ) ≠ 0 for some x 0 in I, so f(x) and g(x) are linearly independent on the int

Division, Why do we start dividion operation from left to right?

Why do we start dividion operation from left to right?

Learn, how to find basic intrest problems

how to find basic intrest problems

Difference between experiment and outcome, Difference Between Experiment an...

Difference Between Experiment and Outcome Experiment is an operation that produces outcomes which can be observed. Outcome/Event is the result of an experiment.

Utilizes the denominator for our substitution, Evaluate given integrals. ...

Evaluate given integrals.                ∫3/(5 y + 4)   dy Solution Let's notice as well that if we take the denominator & differentiate it we get only a constant and th

Complex fractions, A small airplane used 5and2over3 gallons of fuel to fly ...

A small airplane used 5and2over3 gallons of fuel to fly a 2 hour trip.how many gallons were used each hour

Matrix, find the value of x for which [1 0] [0 x-8]

find the value of x for which [1 0] [0 x-8]

Find relation between x and y while lies on straight line, Find the relatio...

Find the relation between x and y when the point (x,y) lies on the straight line joining the points (2,-3) and (1,4) [ Hint: Use area of triangle is 0] Ans :   Hint: If the poi

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