1. c) payoff table
2. b) $2000
3. b) false
4. c) maximax
5. e) under condition of risk
1) What is a tabular presentation that shows the outcome for each decision alternative under the...
Select the answers for questions 1-11, from the following list and write it on the answer sheet; A) State of nature B) Decision C) Alternatives D) Decision table E) Maximin F) Equally likely G) Decision tree H) Node I) Risk J) Favorable market K) Expected monetary value (EMV) L) probability M) Expected value of perfect information (EVPI) N) Pruned O) Decision table P) Maximax 1) A(n) is an occurrence or situation over which the decision maker has little or no...
4. Which Alternative a decision-maker will choose if he/she uses the maximax criterion on the problem below? Which Alternative a decision-maker will choose if he/she uses the maximin criterion on the problem below? Which Alternative a decision-maker will choose if he/she uses the equally likely criterion on the problem below? Please show the process of your answer. States of Nature 1 2 3 Alternative A 50 55 60 Alternative B 30 50 80 Alternative C 70 80 70...
non excel solution, please! 6. Suppose that a decision maker faced with four decision alternatives and four states of natuure develops the following profit payoff table. State of Nature Decision Alternative S3 10 14 d1 10 d2 10 10 d3 13 10 8 d4 If the decision maker knows nothing about the probabilities of the four states of nature, what is the recommended decision using the optimistic, conservative, and minimax regret approaches? ANSWERS: 1. D2 2. a) Al b) A2...
-A __________ is a tool for organizing (or structuring) a decision, which takes into account different __________ which might result under different __________. A payoff table; payoffs; states of nature B decision table; profits; costs C payoff table; profits; times D decision tree; payoffs; probabilities -When using a payoff table to help make a decision, an optimistic decision-maker who wants to maximize payoffs while ignoring potential losses should follow a ____________ decision rule. A maximax...
Which of the following is a decision-making criterion that is used for decision making under risk? a. expected monetary value criterion b. Hurwicz criterion (criterion of realism) c. optimistic (maximax) criterion d. equally likely criterion
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 1 2 d1 10 1 d2 (a) Suppose P(s1)-0.2 and P(sz)-0.8. What is the best decision using the expected value approach? Round your answer in one decimal place v, with an expected value of The best decision is decision alternative d2 3.2 (b) Perform sensitivity analysis on the payoffs for decision alternative di. Assume the...
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...
18 35 Decision States of Nature Alternative Low Rainfall Moderate Rainfall Heavy Rainfall Rice 48 Com 49 Wheat 20 30 What would be the decision if the following criteria are used: (a) Maximin Criterion 1011 (b) Minimax Regret Criterion 101] (c) Maximax Criterion [01] (d) Laplace Criterion © Hurwicz Criterion (Coefficient of optimism a=0.4) [01] (1) Expected Monetary Value Criterion (Probability of low rainfall is 0.3, probability of [02] moderate rainfall is 0.4, and probability of heavy rainfall is 0.3)....
1.Given is a decision payoff table. Future Demand Alternatives Low Moderate High Small Facility 53 31 22 Medium Facility 29 42 32 Large Facility -5 30 53 a) The best decision under uncertainty using MAXIMAX is to select facility b) The best decision under uncertainty using MAXIMIN is to select facility c) The best decision under uncertainty using LAPLACE/EQUALITY LIKELY is to select facility d) If the probabilities for Future Demand when it is Low = 0.35, Moderate = 0.30,...
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...