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(Hurwicz) Method, a=0.8 (8 pts) Calculate the Hurwicz value for each alternative. Put your calculations and...

  1. (Hurwicz) Method, a=0.8 (8 pts)

Calculate the Hurwicz value for each alternative. Put your calculations and results in the table below.

Size of

1st Station

Good Market

Fair Market

Poor Market

Hurwicz Values

Small

$50,000

$20,000

  • $10,000

Medium

$80,000

$30,000

  • $20,000

Large

$100,000

$30,000

  • $40,000

Very large

$300,000

$25,000

  • $160,000

           

           

The maximum of Hurwicz values is ____________, therefore the decision is alternative _______________.

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Answer #1

1. The formula for this wilt value is as followers I Hiz ax man + (1-a) min Given a=0.8 man - In the maximum ratuce from each

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