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

Math, i need help in math

i need help in math

Geometry, What is the better buy?a square pizza measuring 8 inches by 8inch...

What is the better buy?a square pizza measuring 8 inches by 8inches that cost $10 or a round pizza with a 9 inch diameter that also cost $10?

Product rule (f g)' = f ' g + f g', Product Rule: (f g)′ = f ′ g + f g′ ...

Product Rule: (f g)′ = f ′ g + f g′ As with above the Power Rule, so the Product Rule can be proved either through using the definition of the derivative or this can be proved

Combined mean and standard deviation, Combined Mean And Standard Deviation ...

Combined Mean And Standard Deviation Occasionally we may need to combine 2 or more samples say A and B. Therefore it is essential to identify the new mean and the new standard

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

Setofoperations, write CxD being sure to use appropriate brackets and find ...

write CxD being sure to use appropriate brackets and find n(CxD)

Describe real numbers, Q. Describe Real numbers? Ans. There are a ...

Q. Describe Real numbers? Ans. There are a few different ways to describe real numbers. Without going into any of the very technical definitions used by mathematicians, I'

Registration, Iam register on your website but dont have any reply by this ...

Iam register on your website but dont have any reply by this website and no assignment.

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