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

Mixing problems, In these problems we will begin with a substance which is ...

In these problems we will begin with a substance which is dissolved in a liquid. Liquid will be entering as well as leaving a holding tank. The liquid entering the tank may or may

Credit and invoice, mr ouma bought two sets of spanners for sh 300per set ...

mr ouma bought two sets of spanners for sh 300per set two machanic vice at sh 1000each three set of screw driver at sh 115 per set and tool box for sh 300

Logarithms, find any integer from 1-128 on a logarithmic scale

find any integer from 1-128 on a logarithmic scale

What is the probability in which she gets heads further flip, Jennifer ?ipp...

Jennifer ?ipped a coin three times and got heads each time. What is the probability in which she gets heads on the further ?ip? The probability of heads does not modify based o

Exercise of concrete operational stage, Which of the following statements d...

Which of the following statements do you think are true about children? Indicate with 'T' for true and for false. Give reasons for your choice. a) Most primary school children a

The point which divides a gven line - segment externally, The point which d...

The point which divides a gven line - segment externally: Construction : i )Draw BX making an actue angle at B. ii) Starting from B mark three equal points on BX as sh

Operations research, Explain Analytical Models in Operations Research with ...

Explain Analytical Models in Operations Research with Application

how many of the original vectors, We have claimed that a randomly generate...

We have claimed that a randomly generated point lies on the equator of the sphere  independent of where we pick the North Pole.  To test this claim randomly generate ten  vectors 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