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

DECIMALS, the mass of a container is 5.81kg when full with sugar .the mass ...

the mass of a container is 5.81kg when full with sugar .the mass of container is 3.8kg when 3/8 of the sugar is removed.what is the mass of empty container

Area, #What is an easy way to find the area of any figure

#What is an easy way to find the area of any figure

Limit comparison test - sequences and series, Limit Comparison Test Ass...

Limit Comparison Test Assume that we have two series ∑a n and ∑b n with a n , b n   ≥ 0 for all n. Determine, If c is positive (i.e. c > 0 ) and is finite (i.e. c

Graphs, How do I graph a round robin pool tournment with 6 players using gr...

How do I graph a round robin pool tournment with 6 players using graph theory

Volume, Rajun uses 2/3 of a carton of milk to make a pancake. The volume of...

Rajun uses 2/3 of a carton of milk to make a pancake. The volume of milk he uses is 800ml. calculate the volume, in l, of a milk in carton?

Math, a business is owned by three people.the first owns 1/12 of the busine...

a business is owned by three people.the first owns 1/12 of the business and the second owns 1/6 of the business. what fractional part of the business is owned by the third person

Calculate the edges in an undirected graph, Calculate the edges in an undir...

Calculate the edges in an undirected graph along with two vertices of degree 7, four vertices of degree 5, and the remaining four vertices of degree are 6? Ans: Total degree of

Applied mathematics, I have a journal article in applied mathematics and wa...

I have a journal article in applied mathematics and want to analyze the solutions step by step. Is there anyone specialize in this file?

Cardioids and limacons - polar coordinates, Cardioids and Limacons Thes...

Cardioids and Limacons These can be split up into the following three cases. 1. Cardioids: r = a + a cos θ and r = a + a sin θ. These encompass a graph that is vaguel

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