Non-excel solution please. Thank you!
Maximax approach:
For D1 -> Max = 100
D2-> Max = 120
D3 -> Max = 40
D4 -> Max = 80
From these values, Maximum is for D2, which is 120.
So the optimal decision would be D2
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Non-excel solution please. Thank you! SEMINAR 3: PRACTICE PROBLEMS Consider the following payoff table in which Dl throu...
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...
Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision Alternative S1 S2 S3 d1 30 40 -20 d2 80 100 -80 The indifference probabilities are as follows: Indifference Probability (p) Payoff Decision maker A Decision maker B Decision maker C 100 1.00 1.00 1.00 80 0.95 0.80 0.85 40 0.85 0.70 0.75 30 0.75 0.55 0.60 -20 0.60 0.25 0.50 -80 0.00 0.00 0.00 Find a recommended decision for each of...
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...
I posted five questions. The last one is a yes or no.
Thanks.
Fantastic Distributing is in the process of trying to determine where they should schedule next year's production of a popular line of kitchen utensils that they distribute. Manufacturers in four different countries have submitted bids to Fantastic Distributing. However, a pending trade bill in Congress will greatly affect the cost to Fantastic Distributing due to proposed tariffs, favorable trading status, etc. After careful analysis, Fantastic Distributing has...