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

Multiplyig, why is multiplying inportent in our lifes

why is multiplying inportent in our lifes

Just Mixed Number and Fractions, Brent covered 3 1/5 by a number and got 4 ...

Brent covered 3 1/5 by a number and got 4 1/2 what number dis he divide by? The answer is either 1 9/16, or 32/45. Which one is the answer, and how did you get it?

Evaluate the volume and surface area of a rectangular solid, Evaluate the v...

Evaluate the volume and surface area of a rectangular solid: Calculate the volume & surface area of a rectangular solid along with a =   3", b = 4", & c = 5".  Solution:

Describe differance between mean vs. mode, Describe differance between Mean...

Describe differance between Mean vs. Mode ? Every set of numbers or data has a mean and a mode value. The mean is the average value of all the numbers in the set. The mode is t

Tied rankings, Tied Rankings A slight adjustment to the formula is mad...

Tied Rankings A slight adjustment to the formula is made if several students tie and have the similar ranking the adjustment is: (t 3 - t)/12 Whereas t = number of tied

Percents, write as a percent 6/10

write as a percent 6/10

Define a*b for given matrix, Define A*B where:                A =  | 3 -...

Define A*B where:                A =  | 3 -3  6 |          B = |  6   1 |                          | 0  4  2 |              |  0  -5 |

Word problem, adison earned $25 mowing her neighbor''s lawn. then she loane...

adison earned $25 mowing her neighbor''s lawn. then she loaned her friend $18, and got $50 from her grandmother for her birthday. she now has $86. how much money did adison have to

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