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

Introduction to helping children learn mathematics, INTRODUCTION :  Do you...

INTRODUCTION :  Do you remember your school-going days, particularly your mathematics classes? What was it about those classes that made you like, or dislike, mathematics? In this

What is the maximum number calories which consume from fats, Josephine is o...

Josephine is on an 1,800 calorie per day diet. She tries to remain her intake of fat to no more than 30% of her overall calories. Based on an 1,800 calorie a day diet, what is the

Determine the mean of given question, Q . Mrs. Cooper asked her math class ...

Q . Mrs. Cooper asked her math class to keep track of their own grade. Michael, one of the students, lost his assignments, but he remembered the grades of 6 out of 8 assignments:

What is the maximum amount of hours cindy worked together, Carl worked thre...

Carl worked three more than twice as many hours as Cindy did. What is the maximum amount of hours Cindy worked if together they worked 48 hours at most? Let x = the amount of h

Elementary row operations to reduce the augmented matrix, Consider the syst...

Consider the system of linear equations X + ay = 1 2x + 8y = b Where a and b are real numbers. (a)  Write out the augmented matrix for this system of linear equations.

Exponential and geometric model, Exponential and Geometric Model Expo...

Exponential and Geometric Model Exponential model  y = ab x Take log of both sides log y = log a + log b x log y = log a + xlog b Assume log y = Y and log a

What is her weekly paycheck assuming there are deductions, Kyra's weekly wa...

Kyra's weekly wages are $895. A Social Security tax of 7.51% and a State Disability Insurance of 1.2% are taken out of her wages. What is her weekly paycheck, assuming there are no

Probability, Ratio of successes in 5 independent trials to the probability ...

Ratio of successes in 5 independent trials to the probability of successes in two independent trials is 1/4. What is the probability of 4 successes in 6 independent trials?

Types of infinity, TYPES OF INFINITY : Mostly the students have run across...

TYPES OF INFINITY : Mostly the students have run across infinity at several points in previous time to a calculus class. Though, when they have dealt along with this, this was jus

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