2. Use the following table to answer a-d. The payoffs are in COSTS.
S1 (p=.3) |
S2 (p=.2) |
S3 (p=.2) |
S4 (p=.3) |
|
A1 |
5 |
0 |
10 |
25 |
A2 |
35 |
65 |
0 |
0 |
A3 |
20 |
50 |
5 |
35 |
A4 |
0 |
10 |
15 |
20 |
a. In a situation of uncertainty, what is the best alternative? [Use the expected value criteria to find the associated payoffs for each alternative and choose the best one.]
b. Construct a regret table using the table above.
S1 |
S2 |
S3 |
S4 |
|
A1 |
||||
A2 |
||||
A3 |
||||
A4 |
c. Using EOL, what is the best alternative and associated payoff?
d. Calculate the expected value of perfect information
2. Use the following table to answer a-d. The payoffs are in COSTS. S1 (p=.3) S2 (p=.2)...
1. Use the following table to answer a-d. The payoffs are in BENEFITS. a. In a situation of uncertainty, what is the best alternative? [Use the expected value criteria to find the associated payoffs for each alternative and choose the best one.] S1 (p=.25) S2 (p= ) S3 (p=.25) S4 (p=.2) A1 30 10 30 30 A2 0 65 35 15 A3 15 45 10 10 A4 35 25 15 10 b. Construct a regret table using the table...
2. Use the following table to answer a-d. The payoffs are in COSTS. Decision\ State of Nature S1 S2 S3 S4 A1 10 35 25 15 A2 10 15 45 10 A3 15 0 65 35 A4 30 30 10 30 Using different criteria identify, what is the best alternative and associated payoff? a. Optimistic criterion: Decision:________ b. Pessimistic criterion ______________________________ Decision:________
Decision State-of-Nature 1 State-of-Nature 2 State-of-Nature 3 State-of-Nature 4 Alternative 1 10 0 5 25 Alternative 2 0 35 65 0 Alternative 3 5 20 50 35 Alternative 4 15 0 10 20 Construct the regret table using the table above. S1 S2 S3 S4 A1 A2 A3 A4
Consider the following payoff table. S1 S2 S3 S4 A1 22 14 10 -8 A2 12 6 16 -2 A3 -4 8 10 12 With alpha = 0.4, the Hurwicz value for A3 would be: 4.8 2.4 10.4 5.6 With a maximin strategy, the best alternative would be: A1 A2 A3 There is not enough information available.
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative s1 10 4 S2 d1 d2 (a) Suppose P(S1)-0.2 ad P(s2)-0.8. What is the best decision using the expected value approach? Round your answer in one decimal place The best decision is decision alternative d2 , with an expected value of 3.2 (b) Perform sensitivity analysis on the payoffs for decision alternative d1. Assume the...
Three decision makers have assessed payoffs for the following decision problem (payoff in dollars). Decision Alternative State of Nature s1 s2 s3 d1 15 40 –20 d2 60 80 –80 The indifference probabilities are as follows: Indifference Probability (p) Payoff Decision Maker A Decision Maker B Decision Maker C 80 Does not apply Does not apply Does not apply 60 0.7 0.95 0.85 40 0.5 0.9 0.7 15 0.3 0.8 0.55 –20 0.15 0.6 0.35 –80...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative s1 S2 101 4 (a) Suppose P(si)-0.2 and P(s2)-0.8. What is the best decision using the expected value approach? Round your answer in one decimal place. The best decision is decision alternative d2 v , with an expected value of 3.2 (b) Perform sensitivity analysis on the payoffs for decision alternative di. Assume the probabilities...
For the upcoming planting season, Farmer McCoy can plant corn (al), plant wheat (a2), plant soybeans (a3) or use the land for grazing (a4). The payoffs associated with the different actions are influenced by the amount of rain: heavy rainfall (S1), moderate rainfall (S2), light rainfall (S3) or drought season (S4). Develop a course of action for Farmer McCoy. a20 6030 ar 40 50 35 a50 0 45-10 a4 12 15
The following payoff tables represents COSTS. D1 Si 10 22 15 S2 16 18 15 S3 25 8 12 D2 D3 1) Which decision alternative should be chosen, if the decision maker uses the optimistic approach? Choose 2) Which decision alternative should be chosen, if the decision maker uses the mini-max regret approach? Choose 3) Which decision alternative should be chosen, if the decision maker uses the equal-likelihood approach? Choose 4) If the decision maker chooses D1, what is the...
Use the program listing below to answer the questions that follow. Note that this is not a working program. The intent of the assignment is for you to apply your knowledge of structural testing to answer the accompanying testing questions. 1. public static void main(String[] args) { 2. double a1 = 1.0; 3. double a2 = 2.0; 4. double a3 = 3.0; 5. if (cl) { 6. r1 = rate * 1.1; 7. r2 = rate * 2.1; 8. }...