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 the probability - conditional probability, A bag of 28 tulip bulb...

A bag of 28 tulip bulbs contains 12 red tulip bulbs, 9 yellow tulip bulbs, and 7 purple tulip bulbs. Two bulbs are selected without replacement. Determine, a) The probability th

Coordinate geometry, find the value of x for which the distance between the...

find the value of x for which the distance between the points p(4,-5) and q(12,x) is 10 units

Calculate the width of the river, A surveyor is hired to calculate the widt...

A surveyor is hired to calculate the width of a river. Using the example provided, Calculate the width of the river. a. 48 ft b. 8 ft c. 35 ft d. 75 ft

1, use 3/8 of a thin of paint, what fraction of the paint is left in thin (...

use 3/8 of a thin of paint, what fraction of the paint is left in thin (show work

A jeweler has bars of 18-carat gold , A jeweler has bars of 18-carat gold a...

A jeweler has bars of 18-carat gold and 12-carat gold. How much of every melted together to obtain a bar of 16-carat gold, weighing 120 gm ? It is given that pure gold is 24 carat.

Geometry, #pqrs is a parallelogram its adjacent side is 2:1.state tHE angle...

#pqrs is a parallelogram its adjacent side is 2:1.state tHE angles

By the method of completion of squares solve equation, By the method of com...

By the method of completion of squares show that the equation 4x 2 +3x +5 = 0 has no real roots. Ans:    4 x 2 +3 x +5=0 ⇒  x 2 + 3/4 x + 5 = 0 ⇒   x 2 + 3/4 x +

Probability, an insurance salesman sells policies to 5 men, all of identica...

an insurance salesman sells policies to 5 men, all of identical age in good health. the probability that a man of this particular age will be alive 20 years hence is 2/3.Find the p

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