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Alden believes  that Forbe's bid is a random variable B. with the following mass function: P(B=$6000)=0.40, P(B=$8000)=0.30, P(B=$11000)=0.30. It will cost ALden $6000 to copmlete the project. Use each of the decision criteria (maximax, minmax regret, maximin and expected valuted criterion) to determine Alden's bid. Assum that in case of a tie, Alden wins the bidding. (Hint: Let p=Alden's bid, for p<= 6,000, 6,000 < p <= 8,000, 8,000< p <= 11,000, p > 11,000, determine Alden's profit in terms of Alden's bid and Forbe's bid)

Alden believes  that Forbe's bid is a random variable B. with the following mass function: P(B=$6000)=0.40, P(B=$8000)=0.30, P(B=$11000)=0.30. It will cost ALden $6000 to copmlete the project. Use each of the decision criteria (maximax, minmax regret, maximin and expected valuted criterion) to determine Alden's bid. Assum that in case of a tie, Alden wins the bidding. (Hint: Let p=Alden's bid, for p<= 6,000, 6,000 < p <= 8,000, 8,000< p <= 11,000, p > 11,000, determine Alden's profit in terms of Alden's bid and Forbe's bid)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Alden construction is bidding against Forbes construction with a project. Alden believes  that Forbe's bid is a random variable B. with the following mass function: P(B=$6000)=0.40, P(B=$8000)=0.30, P(B=$11000)=0.30. It will cost ALden $6000 to copmlete the project. Use each of the decision criteria (maximax, minmax regret, maximin and expected valuted criterion) to determine Alden's bid. Assum that in case of a tie, Alden wins the bidding. (Hint: Let p=Alden's bid, for p<= 6,000, 6,000 < p <= 8,000, 8,000< p <= 11,000, p > 11,000, determine Alden's profit in terms of Alden's bid and Forbe's bid)

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