Q3: Answer the following: The following payoff table shows the profit for a decision problem with two states of nature and three decision alternatives, Decision State of Nature Lternative S1 S2 D1 10 30 D2 -5 20 D3 60 -10 Identify the decision taken under the following approaches: (1) Pessimistic (2) Optimistic (3) Equal probability (4) Regret (5) Hurwicz criterion. Note : The decision maker's degree of optimism (a) being 0.6.
Q3: Answer the following: The following payoff table shows the profit for a decision problem with two states of nature and three decision alternatives, Decision State of Nature Lternative S1 S2 D1 10 30 D2 -5 20 D3 60 -10 Identify the decision taken under the following approaches: (1) Pessimistic (2) Optimistic (3) Equal probability (4) Regret (5) Hurwicz criterion. Note : The decision maker's degree of optimism (a) being 0.6.
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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