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

Fraction, in a garden 1/8 of the flowers are tulips. 1/4 of the tulips are ...

in a garden 1/8 of the flowers are tulips. 1/4 of the tulips are rd. what fraction of the flowers in the garden are red tulips

Static or dynamic, Consider a discrete-time system that is characterized by...

Consider a discrete-time system that is characterized by the following difference equation: Y(n) = x(n)cos? 0 n, where ? 0  is constant value, x(n)are the discrete-time input

Example of function, Example  Suppose the demand and cost functio...

Example  Suppose the demand and cost functions are given by          Q = 21 - 0.1P and C = 200 + 10Q Where,          Q - Quantity sold

Transpose of a matrix, I didn't understand the concept of Transpose of a Ma...

I didn't understand the concept of Transpose of a Matrix, need assistance.

Statistics and probability, STATISTICS AND PROBABILITY : Statistics  ar...

STATISTICS AND PROBABILITY : Statistics  are the  only  tools  by  which  an  opening  can  be  cut  through  the formidable  thicket  of difficulties  that bars the  path  of

Proof f(x) + g(x) dx = f(x) dx + g(x) dx anti-derivation, Proof of: ...

Proof of: ∫ f(x) + g(x) dx = ∫ f(x) dx + ∫g(x) dx It is also a very easy proof. Assume that F(x) is an anti-derivative of f(x) and that G(x) is an anti-derivative of

Math, what is 8x6 is

what is 8x6 is

Illustration of simpson rule, By using n = 4 and all three rules to approxi...

By using n = 4 and all three rules to approximate the value of the following integral. Solution Very firstly, for reference purposes, Maple provides the following valu

Compute the volume and surface area of a right circular cone, Compute the v...

Compute the volume and surface area of a right circular cone: Compute the volume and surface area of a right circular cone along with r =  3", h = 4", and l = 5".  Be sure to

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