+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
Construct a frequency distribution table of the scores having approximately 10 class intervals and construct a cumulative percentage curve. Use your curve to determine the pe
Bernoulli. Can we use probability models based on Bernoulli trials to investigate the following situations? Explain. a) Each week a doctor rolls a single die to determine whic
When the null hypothesis is rejected in the goodness-of-fit test, it means there is close agreement between the observed and expected frequencies.
It has been hypothesised that the probability of having an asthma attack on a particular day may vary across the days of the week. Baibergenov et al. (2005) report a longitu
To test the hypothesis that 48% of PC users have never used a Mac, the analyst took a sample of 50 PC customers drawn at random and found that 22 of them had never used a Ma
The annual income among male and female nurses differs significantly. There is a significant difference in the length of hospitalization among patients admitted from nursing
Calculate the suitable mean response time from both proposed locations and find out which proposed site must be selected for the new emergency facility.
The ACT is an exam used by colleges and universities to evaluate undergraduate applicants. The test scores are normally distributed. In a recent year, the mean test score wa