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

Percentage of values will fall in the normal group, If the normal range is ...

If the normal range is 65-10 mg/dl, then what percentage of values will fall in the normal group?

If the area of the parallelogram is 36 m2 what is the height, The height of...

The height of a parallelogram measures 5 meters more than its base. If the area of the parallelogram is 36 m 2 , what is the height in meters? Let x = the measure of the base a

Find the value of the derivative, Given y = f(x) = x 2 + 2x +3 a) Use the ...

Given y = f(x) = x 2 + 2x +3 a) Use the definitional formula given below to find the derivative of the function. b) Find the value of the derivative at x = 3.

Geometry, all basic knowledge related to geometry

all basic knowledge related to geometry

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

Need help , understandin rates and unitrates

understandin rates and unitrates

Matlab, Help my matlab questions

Help my matlab questions

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