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?
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
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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?
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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