Question

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Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Regret as an evaluation criterion to evaluate alternatives, Alternatives Low Small Facility 53 Medium Facility 51 Large Facility -13 Future Demand Moderate 50 51 37 High 49 50 51 Alternatives Small Facility Medium Facility Large Facility Worst Regrets ? ? ? a) The worst regrets for alternative Small Facility is b) The worst regrets for alternative Medium Facility is c) The worst regrets for alternative Large Facility is d) The best course of action or decision by using Minimax Regret is to select facility QUESTION 2 9 poin

Answer 1

Answer:

Low Payoff tables Demand Moderate 50 51 High Alternatives Small Facility Medium Facility Large Facility 53 49 50 51 -13 37 51 Regret Table Demand Moderate Low High 2 Maximum Regret 2 0 1 Alternatives Small Facility Medium Facility Large Facility 2 0 1 2 66 14 0 66

Regret = Maximum Payoff for the particular demand - Payoff for the alternatives for the particular demand

Max Regret or Worst Regret = Maximum of Regret for the alternatives

a) 2

b) 2

c) 66

d) Small or Medium

For both Small and Medium facility maximum regret is 2 which is lower than the maximum regret of large facility.