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

How many pages can it print in 4 minutes, Tammi's latest printer can print ...

Tammi's latest printer can print 13.5 pages a minute. How many pages can it print in 4 minutes? Multiply 13.5 by 4 to ?nd out the number of copies made; 13.5 × 4 = 54 copies.

Derive the probability distribution of the completion times, Derive the pro...

Derive the probability distribution of the completion times: a. The following probability distributions relate to the completion times, in weeks, T A and T B of two independ

Stats, the automatic hopper loader is set to put 36 tons of coal in each ca...

the automatic hopper loader is set to put 36 tons of coal in each car. the actual weights of coal loaded into each car arw normally distributed with a mean of 36 tons and a standar

Sketch a graph of the microphone signal, Figure shows noise results for a p...

Figure shows noise results for a prototype van measured on a rolling road. The vehicle had a four-cylinder-in-line engine. The engine speed was varied in 3rd gear from just above

Difererntial equation, Ask queFind the normalized differential equation whi...

Ask queFind the normalized differential equation which has {x, xex} as its fundamental setstion #Minimum 100 words accepted#

Profit maximization, a medical clinic performs three types of medical tests...

a medical clinic performs three types of medical tests that use the same machines. Tests A, B,and C take 15 minutes, 30 minutes and 1 hours respectively, with respective profits of

Repeated roots, Under this section we will be looking at the previous case ...

Under this section we will be looking at the previous case for the constant coefficient and linear and homogeneous second order differential equations.  In this case we need soluti

Solve following 4e1+3 x - 9e5-2 x = 0 logarithms, Solve following 4e 1+3 x...

Solve following 4e 1+3 x - 9e 5-2 x  = 0 . Solution Here the first step is to get one exponential on every side & then we'll divide both sides by one of them (that doesn'

How tall was peter when he turned 15, Peter was 60 inches tall on his thirt...

Peter was 60 inches tall on his thirteenth birthday. By the time he turned 15, his height had increased 15%. How tall was Peter when he turned 15? Find 15% of 60 inches and add

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