Minimax regret method -decision making under uncertainty, Mathematics

MINIMAX regret method

Minimax method assumes that the decision maker will experience 'regret' after he has made the decision and the events have happened. The decision maker chooses the alternative which minimizes the maximum possible regret.

Illustration

Regret table in £ 000's

 

Boom condition

Steady state

Recession

Mini regret  row maxima

Product A

8

5

22

22

Product B

18

0

0

18

Product C

0

6

38

38

 

A regret table is constructed based upon the pay off table. The regret is the 'opportunity losses from taking one decision given that a specific contingency happens in our illustration where there is boom steady state or recession

The ranking by using MINIMAX regret method = BAC

 

 

Posted Date: 2/19/2013 2:44:54 AM | Location : United States







Related Discussions:- Minimax regret method -decision making under uncertainty, Assignment Help, Ask Question on Minimax regret method -decision making under uncertainty, Get Answer, Expert's Help, Minimax regret method -decision making under uncertainty Discussions

Write discussion on Minimax regret method -decision making under uncertainty
Your posts are moderated
Related Questions
The line 4x-3y=-12 is tangent at the point (-3,0) and the line 3x+4y=16 is tangent at the point (4,1). find the equation of the circle. solution) well you could first find the ra


I need help fast with my calculus work

Write down a game each to teach children i) multiplication, ii) what a circle is, iii) estimation skills. Also say what you expect the child to know before you try to t

there are 300 students in the sixth grade. if 40% of them were girls, how many boys were there?

Evaluate following integrals.  (a) ∫ 3e x + 5 cos x -10 sec 2   x dx  (b) ( 23/ (y 2 + 1) + 6 csc y cot y + 9/ y dy Solution (a)    ∫ 3e x + 5 cos x -10 sec 2 x

logrithim of function?

#question if two angles of a triangle are unequal in measure then the side opposite to greater angle is longer than the side opposite to the smaller angle

Standard Hypothesis Tests In principal, we can test the significance of any statistic related to any type of probability distribution. Conversely we will be interested in a few

Polar Coordinates Till this point we've dealt completely with the Cartesian (or Rectangular, or x-y) coordinate system.  Though, as we will see, this is not all time the easie