1. The profit payoff table below showing profit for a decision problem with four states of nature and four decision alternatives are presented below; State of Alternative Nature A1 A2 A3 A4 S1 41 45 30 40 S2 32 38 45 35 S3 51 42 50 31 S4 51 35 34 37 a. Recommend a decisions using the criteria below; i. Maximim criterion i. Maximac criterion Hurwick criterion (a =0.70) Laplace criterion Minimim criterion (EOL Table) ili. iv. V. b. Assume the probabilities for each state of nature are knows, (S1-0.3, S2-D0.2, S3%3D0.3 and S4-0.2). Find the best alternative with EMV and EOL table. c. Based on the results above, which alternative is the best altenative? Why?
1. The profit payoff table below showing profit for a decision problem with four states of nature and four decision alternatives are presented below; State of Alternative Nature A1 A2 A3 A4 S1 41 45 30 40 S2 32 38 45 35 S3 51 42 50 31 S4 51 35 34 37 a. Recommend a decisions using the criteria below; i. Maximim criterion i. Maximac criterion Hurwick criterion (a =0.70) Laplace criterion Minimim criterion (EOL Table) ili. iv. V. b. Assume the probabilities for each state of nature are knows, (S1-0.3, S2-D0.2, S3%3D0.3 and S4-0.2). Find the best alternative with EMV and EOL table. c. Based on the results above, which alternative is the best altenative? Why?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Transcribed Image Text:1. The profit payoff table below showing profit for a decision problem with four states of
nature and four decision alternatives are presented below;
State of
Alternative
Nature
A1
A2
A3
A4
S1
41
45
30
40
S2
32
38
45
35
S3
51
42
50
31
S4
51
35
34
37
a.
Recommend a decisions using the criteria below;
i.
Maximim criterion
ii.
Maximac criterion
ww
Hurwick criterion (a =0.70)
Laplace criterion
Minimim criterion (EOL Table)
ili.
iv.
V.
b. Assume the probabilities for each state of nature are knows, (S1-D0.3, S2-D0.2, S3-D0.3
and S4-0.2). Find the best alternative with EMV and EOL table.
c. Based on the results above, which alternative is the best alternative? Why?
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