1. Decision Making Problem SolvingABC Manufacturing is trying to analyze the cost associated with three decision options andfour states of nature. The payoff matrix for this situation is shown below All S are inthousands.State of NatureS3S4Alternativess1S2A120253035A240304020A310603025What decision should be made according to the following decision rules? (show work)(a) Optimistic(b) Pessimistic(c) LaPlace(d) minimax regret

Answer) Optimistic- This choice happens when chief chooses the most idealistic methodology or…

Decision Making Problem Solving ABC Manufacturing is trying to analyze the cost associated with three decision options and four states of nature. The payoff matrix for this situation is shown below All $ are in thousands. State of Nature Alternatives S2 S3 S4 Al 20 25 30 35 A2 40 30 40 20 A3 10 60 30 25 What decision should be made according to the following decision rules? (show work) Ca) Optimistic (b) Pessimistic c) LaPlace d) minimax regret

Decision Making Problem Solving ABC Manufacturing is trying to analyze the cost associated with three decision options and four states of nature. The payoff matrix for this situation is shown below All $ are in thousands. State of Nature Alternatives S2 S3 S4 Al 20 25 30 35 A2 40 30 40 20 A3 10 60 30 25 What decision should be made according to the following decision rules? (show work) Ca) Optimistic (b) Pessimistic c) LaPlace d) minimax regret

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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Question

1. Decision Making Problem Solving
ABC Manufacturing is trying to analyze the cost associated with three decision options and
four states of nature. The payoff matrix for this situation is shown below All S are in
thousands.
State of Nature
S3
S4
Alternatives
s1
S2
A1
20
25
30
35
A2
40
30
40
20
A3
10
60
30
25
What decision should be made according to the following decision rules? (show work)
(a) Optimistic
(b) Pessimistic
(c) LaPlace
(d) minimax regret

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