+1-415-670-9189
info@expertsmind.com
Decision analysis-maximax criterion
Course:- Basic Statistics
Reference No.:- EM1311272


Assignment Help
Assignment Help >> Basic Statistics

Decision Analysis:

A payoff table (profits) is shown below.

 

States of Nature

Decisions

S1

S2

S3

D1

10

8

6

D2

14

15

2

D3

7

8

9

a. Using the maximax criterion, what decision should be made by the decision maker?

b. Using the maximin criterion, what decision should be made by the decision maker?

c. Using an equal likelihood criterion, what decision should be made by the decision maker?

d. Using minimax regret criterion, what decision should be made by the decision maker?

e. If the probabilities of s1, s2, and s3 are 0.2, 0.4, and 0.4, respectively, what decision should be made by the decision maker?


Ask Question & Get Answers from Experts
Browse some more (Basic Statistics) Materials
What are confounds? Give an example of a design that has three confounds. Describe three ways to alter the design to address these confounds and explain the advantages and d
Make a plot of the residuals and comment on whether they appear to follow a normal distribution. Plot the residuals versus the fitted values. Do they seem to have the same amo
Determine x-bar and s for this data set. You may suppose the values for bulb life are normally distributed. Use traditional method to make your decision.
Determine the regression equation. Interpret the equation. Do more bidders tend to increase or decrease the amount of the winning bid?
The Department of Motor Vehicles (DMV) can service customers at a rate of 20 per hour (or 1/3 per minute) when it comes to license renewals. The service time follows an ex
Professor Brunner had students in his Marketing class rate his performance as Excellent, Good, Fair, or Poor. A graduate student collected the ratings and assured the studen
The same survey was mailed to 500 adults aged 25–34 without the gift certificate. There were 65 responses from the first group and 45 from the second group. (a) Perform a two-
The inventory value is estimated by the sum of book values of population and N-D, where N is population size at top ,D at bottom. show that the estimate is unbiased. Find an e