1. Your parents want to invest in the hospitality business . The profits your parents will get will be shown in this table below : State of Nature Decision Stable Increase Houses 70.000 30.000 Shopping centre Lease B&B 105.000 20.000 40.000 40.000 Please determine the best investment according to the following decision : А. Махimax В. Махimin C. Minimax regret D. Hurwicz (alpha = 0,2) E. Equal likelihood

1. Your parents want to invest in the hospitality business . The profits your parents will get will be shown in this table below : State of Nature Decision Stable Increase Houses 70.000 30.000 Shopping centre Lease B&B 105.000 20.000 40.000 40.000 Please determine the best investment according to the following decision : А. Махimax В. Махimin C. Minimax regret D. Hurwicz (alpha = 0,2) E. Equal likelihood

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

Build New plant option=
Draw a decision tree and determine the best solution
A decision maker faces with the following four alternatives and four states of nature in the profit payoff table below: B. Cal D. Calculate the expected value of perfect to the nearest integer: 1, A2, A3, or A4. 3 States of nature S3 8 0.1
Lakewood Fashions must decide how many lots of assorted ski wear to order for its three stores. Information on pricing, sales, and inventory costs has led to the following payoff table, in thousands. Order size 2 lots 1 lot 1 lot 3 lots (a) Show a regret table. Order size 2 lots 3 lots Low 13 9 6 Low Demand Medium 16 23 38 High 16 38 61 Demand Medium (b) What decision should be made by the optimist? O 1 lot O2 lots O 3 lots (c) What decision should be made by the conservative? O 1 lot O 2 lots O3 lots (d) What decision should be made using minimax regret? O 1 lot O2 lots O 3 lots High Maximum Regret
Aaron is considering potential
There are two outcomes: a good market and a bad market. , The decision table is presented below. There are four alternatives: do nothing, build a small plant, build a medium-size plant, and build a large plant. PAYOFFS Outcomes Alternatives Good market Bad market Do nothing $0 $0 Small Plant $30,000 ($10,000) Medium Plant $100,000 ($15,000) Large Plant $200,000 ($30,000) So you are to workout the Maximax, the Maximin, the Equally likely the Hurwicz based on a .11 probability and the regret using minimax. In words give the answers to these questions: What are your answers under: Answers Best payoff option for maximax is Common Stock Best payoff option for maximin is doing nothing Best payoff option for equally likely is Common Stock Best payoff option for Hurwicz is doing nothing Put a Bold Box around the word Outcomes Keep the Bad Market amounts in Red Ink Make the type style Ariel and Size 12 in Black
No probabilities are known for the occurrence of the nature states. Compare the solutions obtained by each of the following criteria: Savage
Edwards Machine Tools needs to purchase a new machine. The basic model is slower but costs less, while the advanced model is faster but costs more. Profitability will depend on future demand. The following table presents an estimate of profits over the next three years. Decision Low Medium High Basic Model $75,000 $95,000 $120,000 Advanced Model $60,000 $150,000 $260,000 Given the uncertainty associated with the demand volume and no other information to work with, how would you make a decision? Use the Excel template Decision Analysis and explain your reasoning.
A5
problem number 2/a,b,and c No handwritten solution plz
I need decision tree for Case II
Pls help ASAP on both