Come up with a decision using each of the different criteria under conditions of uncertainty using the table below. The payoff values are expressed as LOSSES and alpha = 0.5 1. What is the best of the best payoff value?  2. Which decision alternative has the best of the worst payoff value? 3. Which decision alternative has the minimum payoff value of the maximum regret?  4. Which realism approach decision alternative has the maximum payoff? 5. What is the best equally likely decision to take?

Practical Management Science
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Chapter2: Introduction To Spreadsheet Modeling
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Come up with a decision using each of the different criteria under conditions of uncertainty using the table below. The payoff values are expressed as LOSSES and alpha = 0.5

1. What is the best of the best payoff value? 

2. Which decision alternative has the best of the worst payoff value?

3. Which decision alternative has the minimum payoff value of the maximum regret? 

4. Which realism approach decision alternative has the maximum payoff?

5. What is the best equally likely decision to take?

 

State of Nature (Production Rate)
Alternatives
Very Low
Low
Moderate
High
Machine Brand A
Machine Brand B
Machine Brand c
Machine Brand D
Machine Brand E
Machine Brand F
Machine Brand G
163
125
-87
-19
58
128
-90
-59
36
40
185
-21
13
-56
-71
106
111
48
-55
107
-98
-94
-24
-33
176
165
16
Transcribed Image Text:State of Nature (Production Rate) Alternatives Very Low Low Moderate High Machine Brand A Machine Brand B Machine Brand c Machine Brand D Machine Brand E Machine Brand F Machine Brand G 163 125 -87 -19 58 128 -90 -59 36 40 185 -21 13 -56 -71 106 111 48 -55 107 -98 -94 -24 -33 176 165 16
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