The following is an opportunity-loss table. States of Nature Alternatives A B C Alternative 1 20...
The following is an opportunity-loss table.
|
States of Nature |
|||
|
Alternatives |
A |
B |
C |
|
Alternative 1 |
20 |
100 |
0 |
|
Alternative 2 |
100 |
0 |
25 |
|
Alternative 3 |
0 |
40 |
90 |
The probabilities for the states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively, then calculated expected opportunity loss for Alternative 3 will be?
|
56 |
||
|
52 |
||
|
38 |
||
|
48 |
Homework Answers
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The following is an opportunity-loss table.
States of Nature
Alternatives
A
B
C
Alternative 1
20...
The following is an opportunity loss table. States of Nature Alternatives A B C Alternative 1...
The following is an opportunity loss table. States of Nature Alternatives A B C Alternative 1 90 0 130 Alternative 2 140 70 180 Alternative 3 0 50 0 Do Nothing 200 150 250 What decision should be made based on the minimax regret criterion? A B C ALTERNATIV1 90 0 130 ALTERNATIV2 140 70 180 ALTERNATIV3 0 50 0 DO NOTHING 200 150 250
State of Nature Alternatives A B C Alternative 1 100 120 180 Alternative 2 200 100...
State of Nature Alternatives A B C Alternative 1 100 120 180 Alternative 2 200 100 50 Alternative 3 120 140 120 Do Nothing 0 0 0 The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a perfect forecast of the future were available, what is the expected value of perfect information (EVPI)?
The following is a payoff table giving profits for various situations. States of Nature Alternatives 100 12 Alternative 1 10 20 lternative 2 12 140 120 Alternative 3 Do Nothing The probabilities f...
The following is a payoff table giving profits for various situations. States of Nature Alternatives 100 12 Alternative 1 10 20 lternative 2 12 140 120 Alternative 3 Do Nothing The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a perfect forecast of the future were available, what is the expected value with this perfect information? C) 154 A) 130 D) 36 B) 160
The following is a payoff table giving profits...
u Question 6 10 pts The following is a payoff table giving profits for various situations....
u Question 6 10 pts The following is a payoff table giving profits for various situations. Alternatives Alternative 1 Alternative 2 Alternative 3 Do Nothing States of Nature A B с 100 120 180 200 100 50 120 140 120 0 0 0 The probabilities for states of nature A, B, and Care 0.3, 0.5, and 0.2, respectively. What is the expected value with perfect information (EVwPI)? 0 130 O 160 O 166 O 36 O126
1. The following is a payoff table giving profits for various situations. Alternatives A B C...
1. The following is a payoff table giving profits for various situations. Alternatives A B C Alternative 1 120 140 120 Alternative 2 200 100 50 Alternative 3 100 120 180 Do Nothing 0 0 0 A recent forecast showed a 40% likelihood of A, a 10% likelihood of B, and a 50% likelihood of C. The decision criterion that now should be used to solve this problems is known as a. Equal Likelihood b. Expected Opportunity Loss c. Maximax...
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...
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...
Question 2 A decision maker faced with four decision alternatives and four states of nature develops...
Question 2 A decision maker faced with four decision alternatives and four states of nature develops the following profit payoff table. States of Nature Decision alternative S_1 S_2 S_3 S_4 d_1 14 9 10 5 d_2 11 10 8 7 d_3 9 10 10 11 d_4 8 10 11 13 (a) State and use the average payoff strategy to choose the best decision. (3 Marks) (b) State and use the aggresive strategy to choose the best decision. (3 Marks) (c)...
The following payoff table provides profits based on various possible decision alternatives and various levels of...
The following payoff table provides profits based on various possible decision alternatives and various levels of demand with probabilities of different demands: States of Nature Demand Alternatives Low Medium High Alternative A 80 120 140 Alternative B 70 90 100 Alternative C 30 60 120 Probability 0.4 0.3 0.3 What will be the expected value of perfect information (EVPI) for this situation?
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 an...
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...
2. Assume you are faced with the following decision alternatives and two states of nature. The pr...
2. Assume you are faced with the following decision alternatives and two states of nature. The profit payoff table is shown below States of Nature Prob (S D1 D2 D3 S1 0.60 100 50 40 S2 0.40 20 50 80 Decision Alternatives a) Do you think undertaking a market research study, with a cost of 25, would be justified in this case? b) What should the probabilities of states 1 and 2 be that options D1 and D3 will have...
The following is a payoff table giving profits for various situations. States of Nature Alternatives 100 12 Alternative 1 10 20 lternative 2 12 140 120 Alternative 3 Do Nothing The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a perfect forecast of the future were available, what is the expected value with this perfect information? C) 154 A) 130 D) 36 B) 160
The following is a payoff table giving profits...
u Question 6 10 pts The following is a payoff table giving profits for various situations. Alternatives Alternative 1 Alternative 2 Alternative 3 Do Nothing States of Nature A B с 100 120 180 200 100 50 120 140 120 0 0 0 The probabilities for states of nature A, B, and Care 0.3, 0.5, and 0.2, respectively. What is the expected value with perfect information (EVwPI)? 0 130 O 160 O 166 O 36 O126
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...
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...
2. Assume you are faced with the following decision alternatives and two states of nature. The profit payoff table is shown below States of Nature Prob (S D1 D2 D3 S1 0.60 100 50 40 S2 0.40 20 50 80 Decision Alternatives a) Do you think undertaking a market research study, with a cost of 25, would be justified in this case? b) What should the probabilities of states 1 and 2 be that options D1 and D3 will have...
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