Economy (fate) Down No change Up Standard 2 Luxury 1 3 (A) Find optimal strategies for both the agency and fate (the economy). What is the value of the game? (B) What proportion of each type of tour should be arranged for in advance in order for the agency to maximize its re- turn irrespective of what the economy does the following year? (C) What is the expected value of the game to the agency if they organize only luxury tours and fate plays the strat- egy "down"? If the agency plays its optimal strategy and fate plays the strategy “no change"? Discuss these and other possible scenarios.
Economy (fate) Down No change Up Standard 2 Luxury 1 3 (A) Find optimal strategies for both the agency and fate (the economy). What is the value of the game? (B) What proportion of each type of tour should be arranged for in advance in order for the agency to maximize its re- turn irrespective of what the economy does the following year? (C) What is the expected value of the game to the agency if they organize only luxury tours and fate plays the strat- egy "down"? If the agency plays its optimal strategy and fate plays the strategy “no change"? Discuss these and other possible scenarios.
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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Transcribed Image Text:Tour agency. A tour agency organizes standard and luxury
tours for the following year. Once the agency has committed
to these tours, the schedule cannot be changed. The state of
the economy during the following year has a direct effect on
tour sales. From past records the agency has established the
following payoff matrix (in millions of dollars):
Transcribed Image Text:Economy (fate)
No change Up
Down
Standard
2
01
Luxury
1
3.
(A) Find optimal strategies for both the agency and fate (the
economy). What is the value of the game?
(B) What proportion of each type of tour should be arranged
for in advance in order for the agency to maximize its re-
turn irrespective of what the economy does the following
year?
(C) What is the expected value of the game to the agency if
they organize only luxury tours and fate plays the strat-
egy "down"? If the agency plays its optimal strategy and
fate plays the strategy “no change"? Discuss these and
other possible scenarios.
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