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Find the optimal act using Maxi-Max criteria b) Find the optimal act using Mini-Max criteria   c) Find the optimal act using Maxi-Min criteria  d) Find the optimal act using Min-Max regret table

Find the optimal act using Maxi-Max criteria b) Find the optimal act using Mini-Max criteria   c) Find the optimal act using Maxi-Min criteria  d) Find the optimal act using Min-Max regret table

Practical Management Science
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 4
An investor is to purchase one of three types of real estate, as illustrated in Figure below. The
investor must decide among an apartment building, an office building, and a warehouse. The
future states of nature that will determine how much profit the investor will make are good
economic conditions and poor economic conditions. The profits that will result from each
decision in the event of each state of nature are shown in Table below:

 

 

 


a) Find the optimal act using Maxi-Max criteria

b) Find the optimal act using Mini-Max criteria 
 c) Find the optimal act using Maxi-Min criteria 

d) Find the optimal act using Min-Max regret table 

States of Nature Decision GoOD ECONOMIC Poor ECONOMIC (Purchase) CONDITIONS CONDITIONS $ 50,000 Apartment building Office building Warehouse $ 30,000 - 40,000 100,000 30,000 10,000
Transcribed Image Text:States of Nature Decision GoOD ECONOMIC Poor ECONOMIC (Purchase) CONDITIONS CONDITIONS $ 50,000 Apartment building Office building Warehouse $ 30,000 - 40,000 100,000 30,000 10,000
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