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

The sum of two integers is 36 what is the smaller number, The sum of two in...

The sum of two integers is 36, and the difference is 6. What is the smaller of the two numbers? Let x = the ?rst integer and let y = the second integer. The equation for the su

Circle, a wheel revolves 360 deegre revolution in one minute .Find how many...

a wheel revolves 360 deegre revolution in one minute .Find how many radians will the wheel subtend in one second

Probability, A card is chosen at random from a pack of playing cards.what i...

A card is chosen at random from a pack of playing cards.what is d probability that it is either a heart or the queen of spades

Find the surface-radius of earth, a) The distance d that can be seen fro...

a) The distance d that can be seen from horizon to horizon from an airplane varies directly as the square root of the altitude h of the airplane. If d = 213 km for h = 3950

Word problems, please can you help me with word problems

please can you help me with word problems

Percentage, At an office, the manager earns 40% more than a first year empl...

At an office, the manager earns 40% more than a first year employees. The employee earns what fraction of the manager earnings?

Integrals involving roots - integration techniques, Integrals Involving Roo...

Integrals Involving Roots - Integration Techniques In this part we're going to look at an integration method that can be helpful for some integrals with roots in them. We hav

Solve the linear programming problem using simple method, Solve the followi...

Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x 1 + 2X 2 Subject to the constraints:                  X 1 + X 2 ≤ 4

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.

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