Graphical method, Managerial Accounting

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

Posted Date: 12/8/2012 4:00:41 AM | Location : United States







Related Discussions:- Graphical method, Assignment Help, Ask Question on Graphical method, Get Answer, Expert's Help, Graphical method Discussions

Write discussion on Graphical method
Your posts are moderated
Related Questions
Sources of Working Capital Finance Working capital finance may be classified in the subsequent: Spontaneous Source of Finance Finance that naturally arises in

The assignment model Consider the situation of assigning m jobs (or workers) to n machines. A job i(= 1,2,3 ...m) when assigned to machine j(= 1,2,3 ...n)  acquires a cost Cij.

What is the fastest time financial accounting assignment can be done by your company? It will be a report type format but overview type without going into depth.

Objectives of the cost accounting The Objectives of the cost accounting are ascertain of costs, fixation of selling prices, proper recording and presentation of cost data to th

Ranking of Decision Packages The ranking procedure is employed to establish a rank priority of decision packages in the organization. Throughout the ranking procedure managers

Analysis of Each Decision Package This analytic procedure permits the manager of the decision package and its alternatives to assess and validate its operation. Numerous quest

given the above data what would the breakeven in units and dollars be if u wanted a necessary after tax profit of $ 36,000 (assume a 30% tax rate ) units __________ ales dollars _

Let a quarry's cost function of producing Q tons of stone per hour be given by TC = Q 3 - 10Q 2 + 40Q + 25, so that marginal cost function is MC= 3Q 2 - 20Q + 40. (i) Find th

Application of Transportation Model In the direct logic, the transportation model looks for the determination of a transportation plan of a particular commodity from a number o

Stages in the performance budgeting The stages in the performance budgeting is enumerated as follows: 1) Establishment of goals objectives and policies: data collection revi