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

Determine y' for xy = 1 by implicit differentiation, Determine y′ for xy = ...

Determine y′ for xy = 1 . Solution : There are in fact two solution methods for this problem. Solution 1: It is the simple way of doing the problem.  Just solve for y to

Undetermined coefficients, UNDETERMINED COEFFICIENTS The way of Undeter...

UNDETERMINED COEFFICIENTS The way of Undetermined Coefficients for systems is pretty much the same to the second order differential equation case. The simple difference is as t

Allied mathematics, The tenth term in the binomial expansion of (1-1/4)(1-1...

The tenth term in the binomial expansion of (1-1/4)(1-1/5)(1-1/6)...(1-1/n+3) is equal to

Limit problem, limit x-a/|x-a| equals x-a [a]a [b]0 [c]-a [d]none 0f these

limit x-a/|x-a| equals x-a [a]a [b]0 [c]-a [d]none 0f these

Permutation, HOW MANY number laying between 100 and 1000 can be formed with...

HOW MANY number laying between 100 and 1000 can be formed with 0,1,2,3,4,5 and also divisible by 5 with distinct digit

Applications of series - differential equations, Series Solutions to Differ...

Series Solutions to Differential Equations Here now that we know how to illustrate function as power series we can now talk about at least some applications of series. There ar

Sketch the feasible region, Sketch the feasible region for the following se...

Sketch the feasible region for the following set of constraints: 3y - 2x  ≥ 0 y + 8x  ≤  53 y - 2x  ≤  2 x  ≥ 3. Then find the maximum and minimum values of the objective

Which of the subsequent numbers is equivalent to 12.087, Which of the subse...

Which of the subsequent numbers is equivalent to 12.087? Zeros can be added to the end (right) of the decimal portion of a number without changing the value of the number; 12.

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