Maximin method -decision making under uncertainty, Mathematics

Assignment Help:

Decision making under uncertainty

Various methods are used to make decision in circumstances whereas only the pay offs are identified and the likelihood of every state of nature are identified

a)      Maximin Method

This criterion is based upon the "conservative approach' to suppose that the worst possible is going to occur. The decision maker considers every strategy and locates the minimum pay off for each and then selects that alternative that maximizes the minimum payoff

Demonstration

Rank the products A, B and C applying the Maximin rule b using the given payoff table showing potential losses and profits which are expected to arise from launching these three products in three market situation

Pay off table in £ 000's

 

Boom condition

Steady state

Recession

Mini profits row minima

Product A

+8

1

-10

-10

Product B

-2

+6

+12

-2

Product C

+16

0

-26

-26

 

In above table

Ranking the MAXIMIN rule = BAC

 


Related Discussions:- Maximin method -decision making under uncertainty

Finding length and height with volume and width?, I figured out the volume ...

I figured out the volume and the width, but I have no idea how to use that information to get the height and the length!

Adding fractions with the same denominator, Q. Adding Fractions with the Sa...

Q. Adding Fractions with the Same Denominator? Adding fractions with the same denominator is easy- you add the numerators (the tops), and you leave the denominator alone!

Precalculus help, tsunami equation A sin (b * t) + k what is b supposed t...

tsunami equation A sin (b * t) + k what is b supposed to be if t is time a is amplitude and k is average water level (not exact value of b just what is it)

Linear programming , Use the simplex method to solve the following LP Probl...

Use the simplex method to solve the following LP Problem. Max Z = 107x1+x2+2x3 Subject to 14x1+x2-6x3+3x4=7 16x1+x2-6x3 3x1-x2-x3 x1,x2,x3,x4 >=0

Core concepts, define marketing and show its core concepts

define marketing and show its core concepts

Prove that the height of the center of the balloon, A round balloon of radi...

A round balloon of radius 'a' subtends an angle θ at the eye of the observer while the angle of elevation of its centre is Φ.Prove that the height of the center of the balloon is a

Stages of multiplication from the beginning, What is our aim when teaching ...

What is our aim when teaching children multiplication? Firstly they should be able to judge which situations they need to multiply in, and the numbers that are to be multiplied sec

Geometry, how to do proving of rectilinear figures?..

how to do proving of rectilinear figures?..

Converting mixed numbers to improper fractions, Q. Converting Mixed Numbers...

Q. Converting Mixed Numbers to Improper Fractions? Ans. Converting a mixed number to an improper fraction is easy. A single multiplication, and then a single addition:

Example of fraction, Example  Reduce 24/36 to its lowest terms. 2...

Example  Reduce 24/36 to its lowest terms. 24/36=12/18=6/9=2/3. In the first step we divide the numerator and the denominator by 2. The fraction gets reduced

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