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

Linear equation, The ratio between the length and breadth of a rectangular ...

The ratio between the length and breadth of a rectangular field is 11:7. The cost of fencing it is Rs. 75,000. Find the dimensions of the field

Fractions Word Problem, 1/8 of the passengers of a train were children.If t...

1/8 of the passengers of a train were children.If there were 40 children travelling in the train on a certain day,how many adults were there in that train that day?

Tent originally sold for $2 what is the percent of discount, A tent origina...

A tent originally sold for $260 and has been marked down to $208. What is the percent of discount? Find out the number of dollars off. $260 - $208 = $52. Further, determine wha

Interest, kolushushi borrowed tsh 250000/- and paid135000/- as interest in ...

kolushushi borrowed tsh 250000/- and paid135000/- as interest in 3 years. what rate of interest was paid

Multiplication example, Example  Multiply 3x 5 + 4x 3 + 2x - 1 ...

Example  Multiply 3x 5 + 4x 3 + 2x - 1 and x 4 + 2x 2 + 4. The product is given by 3x 5 . (x 4 + 2x 2 + 4) + 4x 3 . (x 4 + 2x 2 + 4) + 2x .

Integration, sketch the curve y=9-x2 stating the coordinates of the turning...

sketch the curve y=9-x2 stating the coordinates of the turning point and of the intersections with the axes.

Differential Equations, Verify Liouville''''s formula for y "-y" - y'''' + ...

Verify Liouville''''s formula for y "-y" - y'''' + y = 0 in (0, 1) ?

Identify the children strategies to solve maths problems, Here are four pro...

Here are four problems. Four children solved one problem each, as given below. Identify the strategies the children have used while solving them. a) 8 + 6 = 8 + 2 + 4 = 14 b)

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