Graphical method, Managerial Accounting

Assignment Help:

GRAPHICAL METHOD

Graphical methods can be used in games with no saddle points and having pay off m X 2 or 2 X n matrix.
The aim is to substitute a much simpler 2 X 2 matrix for the original m X 2 or 2 X m matrix.

Example:
Establish the optimum strategies and the value of the game from the following payoff matrix game.

24_formula1.jpg

Draw two vertical axes and plot two payoffs corresponding to each of the five columns. The pay off numbers in the first row is plotted on Axis I and those in second rows on Axis II.

1050_formula2.jpg



Thus the two pay off numbers 6 and 3 in the first column are shown respectively by point A on Axis I and point B on Axis II.
Join the corresponding pay off numbers on Axis I and Axis II by straight lines.

On the two intersecting lines at the very bottom, thicken them from below up to the point of intersection, i.e. utmost point on the boundary.
The thick lines on the graph KT and LT meet at T

The two lines passing through T, identify the two critical moves of Y which combined with X, yield the following 2 X 2 matrix.

743_Formula3.jpg


Related Discussions:- Graphical method

Credit information, So as to makes sure that the receivables are collected ...

So as to makes sure that the receivables are collected in occupied and on due date by the customers, prior information of their credit worthiness must be obtainable. This informati

What are the characteristics of product life cycle, Characteristics of prod...

Characteristics of product life cycle The major characteristics of life-cycle concept are as follows: 1) The products have finite live and pass by the cycle of development i

What are the disadvantages of the cost accounting, Disadvantages of the cos...

Disadvantages of the cost accounting: 1. It is unnecessary: it is argued that maintenance of the cost records is not necessary and involves duplication of work. It is based o

Make and buy, The Rohr Company’s old equipment for making subassemblies is ...

The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme

Implied interest rate, Suppose the spot price of gold is $1700 per ounce. T...

Suppose the spot price of gold is $1700 per ounce. The futures price for delivery in six months is $1712, while the futures price for delivery in one year is $1720. The interest ra

Characteristics of current assets, Working Capital management is affected t...

Working Capital management is affected through two characteristics of current assets that are as follows (i) short life span (ii) swift transformation in the other asset forms.

Budget preparation-monitoring and evaluation , Budget Preparation The ...

Budget Preparation The organization's budget is ready following the acceptance and sanction of the decision packages. Once the budget of organization has been accepted manager

Process of pricing in maturity period, Q.Process of Pricing in maturity per...

Q.Process of Pricing in maturity period? Maturing periods is the third stage in the life cycle of a product. If is a stage between growth period and decline period of sales. So

Carrying costs of inventory-relevant costs of eoq model, Carrying costs of ...

Carrying costs of inventory These are costs incurred because the firm has decided to maintain inventories. They generally consist of: •    Stock-out costs •    Insurance co

Cindy, School problem is asking to calculate the work in progress inventory...

School problem is asking to calculate the work in progress inventory for the beginning of a month without providing previous month data.

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