Minimax regret method -decision making under uncertainty, Mathematics

Assignment Help:

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

 

 


Related Discussions:- Minimax regret method -decision making under uncertainty

Logics Puzzle, It’s been a busy weekend for Larry. Five people in his neigh...

It’s been a busy weekend for Larry. Five people in his neighborhood left on vacation Saturday morning and each of them left a pet for Larry to care for until they return. It’s a go

Division, how do you turn 91 divided by730 into a compatible number

how do you turn 91 divided by730 into a compatible number

What is the average of his four quiz grades, Andy earned the subsequent gra...

Andy earned the subsequent grades on his four math quizzes: 97, 78, 84, and 86. What is the average of his four quiz grades? To ?nd out the average, you must add the items (97

Profit maximization, a medical clinic performs three types of medical tests...

a medical clinic performs three types of medical tests that use the same machines. Tests A, B,and C take 15 minutes, 30 minutes and 1 hours respectively, with respective profits of

The multiplication algorithm, THE MULTIPLICATION ALGORITHM :  Some Class 3...

THE MULTIPLICATION ALGORITHM :  Some Class 3 children in a nearby school had been taught the standard multiplication. Algorithm, and had even done reasonably well in the tests bas

Derivatives for logarithm, Logarithm Functions : Now let's briefly get the...

Logarithm Functions : Now let's briefly get the derivatives for logarithms.  In this case we will have to start with the following fact regarding functions that are inverses of ea

The Bake Sale, Lindy has 48 chocolate chip cookies and 64 vanilla wafer coo...

Lindy has 48 chocolate chip cookies and 64 vanilla wafer cookies. How many bags can Lindy fill if she puts the chocolate chip cookies and the vanilla wafers in the same bag? She pl

How much does kristen have left after the money is taken out, Kristen earns...

Kristen earns $550 each week after taxes. She deposits 10% of her income in a savings account and 7% in a retirement fund. How much does Kristen have left after the money is taken

Distance is given then find the value of k, In the graphical representatio...

In the graphical representation of a frequency distribution if the distance between mode and mean is k times the distance between median and mean then find the value of k.

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