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

Multiply 3 (x + 4) = 3x + 12 to find out the total perimeter, Jake required...

Jake required to find out the perimeter of an equilateral triangle whose sides measure x + 4 cm each. Jake realized that he could multiply 3 (x + 4) = 3x + 12 to find out the total

Rejection and acceptance regions, Rejection and Acceptance regions All ...

Rejection and Acceptance regions All possible values which a test statistic may either suppose consistency along with the null hypothesis as acceptance region or lead to the re

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

HELP, WHAT TWO SIX DIDGIT NUMBERS CAN YOU ADD 984,357

WHAT TWO SIX DIDGIT NUMBERS CAN YOU ADD 984,357

Projectile, what is the greatest projection range down an inclined plane? h...

what is the greatest projection range down an inclined plane? how we will calculate that?

Sum, As1212uestion #Minimum 100 words accepted#

As1212uestion #Minimum 100 words accepted#

Addition and subtraction, In addition and subtraction we have discussed ...

In addition and subtraction we have discussed 1) Some ways of conveying the meaning of the operations of addition and subtraction to children. 2) The different models o

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