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

Show that tan = 1/v3 , If 7sin 2 ?+3cos 2 ? = 4, show that tan? =   1/√3  ...

If 7sin 2 ?+3cos 2 ? = 4, show that tan? =   1/√3                      . Ans:    If 7 Sin 2 ? + 3 Cos 2 ? = 4 S.T. Tan?  1/√3 7 Sin 2 ? + 3 Cos 2 ? = 4 (Sin 2 ? + Cos 2 ?)

Linear function, find the temperature at which the celsius and farhenheit t...

find the temperature at which the celsius and farhenheit temperatures are numerically equl

Pair of straight lines, find the equation of locus of point which lies on b...

find the equation of locus of point which lies on bisectors of angles between the coordinate axes

2 step equations, What is a two step equation that equals 8 ?

What is a two step equation that equals 8 ?

If 0.3 is added to 0.2 times the quantity x - 3, If 0.3 is added to 0.2 tim...

If 0.3 is added to 0.2 times the quantity x - 3, the result is 2.5. What is the value of x? The statement, "If 0.3 is added to 0.2 times the quantity x - 3, the result is 2.5,

Power of x, (x+1/x)^2=3 then value of x^72+x^66+x^54+x^36+x^24+x^6+1 is

(x+1/x)^2=3 then value of x^72+x^66+x^54+x^36+x^24+x^6+1 is

How to multiplying rational expressions, how to Multiplying Rational Expres...

how to Multiplying Rational Expressions ? To multiply fractions, or rational expressions, you must multiply the numerators and then multiply the denominators. Here's how it is

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