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

Differentiate the equation x = x (t ) and y = y (t ) , Suppose that x = x (...

Suppose that x = x (t ) and y = y (t ) and differentiate the following equation with respect to t. Solution                                         x 3 y 6 + e 1- x - cos (5

Least common denominator, Let's recall how do to do this with a rapid numbe...

Let's recall how do to do this with a rapid number example.                                                     5/6 - 3/4 In this case we required a common denominator & reme

Interpretations of derivatives, Interpretations of derivatives. Exampl...

Interpretations of derivatives. Example:   Find out the equation of the tangent line to                                       x 2 + y 2   =9 at the point (2, √5 ) .

Counters and registers, design a synchronous, recycling, MOD-12 counter wit...

design a synchronous, recycling, MOD-12 counter with D FF''s. Use the states 0000 through 1011 in the counter.

Tangents, find a common tangent to two circles

find a common tangent to two circles

Example of integrals involving trig functions, Example of Integrals Involvi...

Example of Integrals Involving Trig Functions Example: Estimate the following integral. ∫ sin 5 x dx Solution This integral no longer contains the cosine in it that

Prove that its inclination is given by cot = b cot - a, Two stations due...

Two stations due south of a leaning tower which leans towards the north are at distances a and b from its foot.  If α ,  β be the elevations of the top of the tower from these

What is the average temperature on the celsius scale, Peggy's town has an a...

Peggy's town has an average temperature of 23° Fahrenheit in the winter. What is the average temperature on the Celsius scale? If the total amount for both is 80, after that th

Knowing your learner, Here, we have tried to present some of the different ...

Here, we have tried to present some of the different thinking and learning processes of preschool and primary school children, in the context of mathematics learning. We have speci

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