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

Which mathematical property did marty use to get similar ans, Marty used th...

Marty used the subsequent mathematical statement to show he could change an expression and still get the similar answer on both sides: 10 × (6 × 5) = (10 × 6) × 5 Which mathematica

Trigonometry, if tan theta =1,find the value of sin4 theta + cos4 theta

if tan theta =1,find the value of sin4 theta + cos4 theta

Pairs of straight lines, The equation ax2 + 2hxy + by2 =0 represents a pair...

The equation ax2 + 2hxy + by2 =0 represents a pair of straight lines passing through the origin and its angle is tan q = ±2root under h2-ab/(a+b) and even the eqn ax2+2hxy+by2+2gx+

Geometry, #question.prove that the diagonals of a trapezium divide each oth...

#question.prove that the diagonals of a trapezium divide each other proportionally .

Shares and dividends, I have a maths assignment as- Use a newspaper to stud...

I have a maths assignment as- Use a newspaper to study and give a report on shares and dividends.

Real exponents, It is a fairly short section.  It's real purpose is to ackn...

It is a fairly short section.  It's real purpose is to acknowledge that the exponent properties work for any exponent.  We've already used them on integer and rational exponents al

How to multiplying rational expressions, how to Multiplying Rational Expres...

how to Multiplying Rational Expressions ? To multiply fractions, or rational expressions, you must multiply the numerators and then multiply the denominators. Here's how it is

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