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

Algebra, 25 algebraic equations that equal 36

25 algebraic equations that equal 36

Find the sum of series r/(r+1)(r+2)(r+3)from 1 upto infinity, Apply the con...

Apply the concept of partial fraction and add the corresponding terms. The terms will get cut automatically leaving the first and last term

Statistics, find the number of ways 17 employees can b chosen from 327

find the number of ways 17 employees can b chosen from 327

Logarithms, We know that 2 4 = 16 and also that 2 is referred to as ...

We know that 2 4 = 16 and also that 2 is referred to as the base, 4 as the index or power or the exponent. The same if expressed in terms of logarithms would be log 2

Combined mean and standard deviation, Combined Mean And Standard Deviation ...

Combined Mean And Standard Deviation Occasionally we may need to combine 2 or more samples say A and B. Therefore it is essential to identify the new mean and the new standard

Triple integrals, Consider a circular disc of radius 1 and thickness 1 whic...

Consider a circular disc of radius 1 and thickness 1 which has a uniform density 10 ?(x, y, z) = 1. (a) Find the moment of inertia of this disc about its central axis (that is, the

Multiplication and division should be learnt intermeshed, E1) Do you agree ...

E1) Do you agree that multiplication and division should be learnt intermeshed with each other, or not? Give reasons for your answer.  E2) How would you explain to children wh

Periodicity, how to find periods in trigon ometry

how to find periods in trigon ometry

Design a game strategy involves process of learning maths, Doing these sums...

Doing these sums initially in this way helps children see why they carry over numbers to the next column. You may like to devise some related activities now. , EI) Give activ

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