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

Monica, Express area of a square with sides of length 5ab as a monomial.

Express area of a square with sides of length 5ab as a monomial.

Shares and dividend, by purchasing rs.10 shares for rs.40 each mala gets 5%...

by purchasing rs.10 shares for rs.40 each mala gets 5% income on her investment. what rate of dividend is the company paying? what will be the amount of dividend if she buys 120 sh

#title.simpal harmonic motion., #questionShow that the system oscillates in...

#questionShow that the system oscillates in simple harmonic motion demonstrated by; , for which the general solution where X = (x – x0)..

Solve the limit problem, Solve the Limit problem as stated  Limit x tends...

Solve the Limit problem as stated  Limit x tends to 0 [tanx/x]^1/x^2 is ? lim m tends to infinity [cos (x/m)] ^m is? I need the procedure of solving these sums..

Parabola, If the point (a,2a) is an interior point of the region bounded by...

If the point (a,2a) is an interior point of the region bounded by the parabola y2=16x and the double ordinate through the focus then a belongs to

The width of a rectangle is 30.5% of its length, The width of a rectangle i...

The width of a rectangle is 30.5% of its length l. Write a formula for the area and perimeter of the rectangle in terms of l only

Solving decimal equations, The distance around a square photograph is 12.8 ...

The distance around a square photograph is 12.8 centimeters. What is the langth of each side of the fotograph?

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