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
Dinesh bought an article for Rs. 374, which included a discount of 15% on the marked price and a sales tax of 10% on the reduced price. Find the marked price of the article.

when i couulate the formula f 64 divided by 65 how do i do this

in a given figure a,b,c and d are points on a circle such that ABC =40 and DAB= 60 find the measure of DBA

find the series of the first twenty terms

If the points for a right angle triangle are XYZ where do I mark the points?


First, larger the number (ignoring any minus signs) the steeper the line.  Thus, we can use the slope to tell us something regarding just how steep a line is. Next, if the slope

The scores of students taking the ACT college entrance examination are normally distributed with a mean m = 20.1 and a standard deviation s = 5.8. A single student is selected a

Write down the system of differential equations for the population of both predators and prey by using the assumptions above. Solution We will start off through letting that

I need help with pre algebra in 5th grade intermidate school math until Tuesday afternoon please