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

Lorie, A bourbon that is 51 proof is 25.5% alcohol by volume while one that...

A bourbon that is 51 proof is 25.5% alcohol by volume while one that is 82 proof is 41% alcohol. How many liters of 51 proof bourbon must be mixed with 1.0 liter of 82 proof bourbo

Metric space, Assume that (X, d) is a metric space and let (x1, : : : , x n...

Assume that (X, d) is a metric space and let (x1, : : : , x n ) be a nite set of pointsof X. Elustrate , using only the de nition of open, that the set X\(x1, : : : , x n ) obtain

Distinct eigenvalues –system solving, DISTINCT EIGENVALUES -SYSTEM SOLVING ...

DISTINCT EIGENVALUES -SYSTEM SOLVING : E xample Solve the following IVP. Solution : Therefore, the first thing that we must to do that is, get the eigenvalues

Empty set, There is one final topic that we need to address as far as solut...

There is one final topic that we need to address as far as solution sets go before leaving this section. Consider the following equation and inequality.

factorial, why zero factorial is equal to on

why zero factorial is equal to one

SOLID MENSURATION, The base of an isosceles triangle and the altitude drawn...

The base of an isosceles triangle and the altitude drawn from one of the congruent sides are equal to 18cm and 15cm, respectively. Find the lengths of the sides of the triangle.

Methods of set representation, I have an assignment of set theory, please E...

I have an assignment of set theory, please Explain Methods of set representation.

Share and divivdend, i m making a project on share and dividend. will u pls...

i m making a project on share and dividend. will u pls give the all of 10pages information ?

Taylor series - series solutions to differential equations, Once we get out...

Once we get out of the review, we are not going to be doing a lot with Taylor series, but they are a fine method to get us back into the swing of dealing with power series. Through

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