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

Profit, A wholesaler allows a discount of 20% on the list price to a retail...

A wholesaler allows a discount of 20% on the list price to a retailer. The retailer sells at 5% discount on the list price.If a customer paid Rs 114 for an article,what profit is m

Example of set representation, Can anybody suggest me any example of Set Re...

Can anybody suggest me any example of Set Representation?

Example for articulate reasons and construct arguments, A Class 4 teacher w...

A Class 4 teacher was going to teach her class fractions. At the beginning of the term she asked the children, "If you had three chocolates, and wanted to divide them equally among

Famous Numbers, Do you provide the answers to the Famous Numbers Exercise?

Do you provide the answers to the Famous Numbers Exercise?

A card is drawn from a well shuffled deck of cards, A card is drawn from a ...

A card is drawn from a well shuffled deck of cards (i) What are the odds in favour of getting spade? (Ans: 1:3, 3:1, 3:10, 1:25) (ii)  What are the odds against getting a spa

Translate the formula into prefix form, Translate the following formula int...

Translate the following formula into a prefix form expression in Scheme: 5+4*(6-7/5)/3(14-5)(3+1)

Curve tracing, How we calculate region for curve tracing

How we calculate region for curve tracing

Probability, A man is known to speak truth 3 out of 4 times.He throws adi...

A man is known to speak truth 3 out of 4 times.He throws adie and reports it is a six. Find the probability that it is actually a six. Solution)  we can get a six if a man s

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