+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
Gestational Age (Gestage, weeks) for sample of 100 low birth weight infants, and output from fitting a simple linear regression model to data, regressing Headcirc (Y) on Ges
The researcher will then compare the scores for the 2 treatments. If there is a difference between the 2 groups of scores, briefly explain how the difference may have been cau
a. State the appropriate hypotheses for your significance test. b. Use the sample results to compute the test statistic and the p-value.
Electricity is commonly traded at the California-Oregon border (COB) and Palo Verde (PV) in Arizona. Assume you take a sample of 100 daily electricity market closing prices
Demostate the use of appropriate tools for converting data into meaningful information and select, defend and use appropriate statistical tools for analysis of data and interp
Plot the data on fruit and vegetable consumption. Discuss the underlying causes that might explain the trend or pattern. Fit a linear trend to the data.
What is the purpose of conducting an experiment? How does an experimental design accomplish its purpose and what are the advantages and disadvantages of an experimental design
How would you find the normal approximation to the binomial probability P(x = 5) in part A? Please show how you would calculate µ and σ in the formula for the normal approxi