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

Solid mensuration, given dimensions: 130cm, 180cm, and 190cm is to be divid...

given dimensions: 130cm, 180cm, and 190cm is to be divided by a line bisecting the longest side shown from its opposite vertex. what''s the area adjacent to 180cm? ;

Trigonometric ratios, to difine trigonometric ratios of an angle,is it nece...

to difine trigonometric ratios of an angle,is it necessary that the initial ray of the angle must be positive x-axis?

Finite math, Find the present value of an ordinary annuity which has paymen...

Find the present value of an ordinary annuity which has payments of 2300 per year for 15 years at 6% compounded annually

How many relations are possible from a set, How many relations are possible...

How many relations are possible from a set A of 'm' elements to another set B of 'n' elements?     Ans: A relation R from a set A to other set B is specified as any subset of A

Integration of sin ³a.cos ³a , writing sin 3 a.cos 3 a = sin 3 a.cos 2 a.co...

writing sin 3 a.cos 3 a = sin 3 a.cos 2 a.cosa = sin 3 a.(1-sin 2 a).cosa put sin a as then cos a da = dt integral(t 3 (1-t 2 ).dt = integral of t 3 - t 5 dt = t 4 /4-t 6 /6

Numerical Analysis, Hello there I have question about convergence of pth ...

Hello there I have question about convergence of pth root of square matrix? Do you have any expert in numerical analysis ?

My daugther needs help, my daughter is having trouble with math she cant un...

my daughter is having trouble with math she cant understand why please help us

Measurement of the sampling distribution, Caterer determines that 87% of p...

Caterer determines that 87% of people who sampled the food thought it was delicious. A random sample of 144 out of population of 5000 taken. The 144 are asked to sample the food. I

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