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

Example of operational stages in learning maths, Children of the same age c...

Children of the same age can be at different operational stages, and children of different ages, can be at the same developmental stage." Do you agree with this statement? If so, g

Piecewise, x=±4, if -2 = y =0 x=±2, if -2 = y = 0

x=±4, if -2 = y =0 x=±2, if -2 = y = 0

How much area will it irrigate in 30 minutes , Water in a canal 30 dm wide ...

Water in a canal 30 dm wide and 12 dm deep is flowing with a velocity of 10 km/h. How much area will it irrigate in 30 minutes if 8 cm of standing water is required for irrigation?

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

Dilemmas of america''s minority groups, Explain this statement " As we begi...

Explain this statement " As we begin the 21st century, the dilemmas of America's minority groups remain perhaps the primary unresolved domestic issue facing the nation." How might

Pair of linear equations in two variables, PAIR OF LINEAR EQUATIONS IN TWO ...

PAIR OF LINEAR EQUATIONS IN TWO VARIABLES: Like  the  crest  of a  peacock so  is  mathematics  at the  head of all knowledge. Example At a certain time in a deer park, t

Rounding whole numbers, Rounding whole numbers List the order in which ...

Rounding whole numbers List the order in which nancy, amy, ethel and cindy line up in single file to board the school bus. Then match the girls with their heights, which are fo

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