For the following payoff table, the probability of event 1 is 0.8, the probability of event 2 is 0.1, and the probability of event 3 is 0.1 ACTION ACTION EVENT A ($) B ($) 1 50 10 2 300 100 3 500 200 1. Compute the coefficient of variation for action A 2. Compute the coefficient of variation for action B 3. Determine the optimal action based on the maximin criterion

For the following payoff table, the probability of event 1 is 0.8, the probability of event 2 is 0.1, and the probability of event 3 is 0.1 ACTION ACTION EVENT A ($) B ($) 1 50 10 2 300 100 3 500 200 1. Compute the coefficient of variation for action A 2. Compute the coefficient of variation for action B 3. Determine the optimal action based on the maximin criterion

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

Suppose a person is thinking about entering a MarioKart competition at theirlocal videogame store. The competition costs 20 dollars to enter. The competition consists of 10 matches. The person knows that their chance of winning each match is 65% and that each match is independent of the others. The payout for the competition is: WIN ALL 10 Matches: 500 Dollar Prize WIN 9 Matches: 250 Dollar PrizeWIN 8 Matches: 50 Dollar Prize OTHERWISE: Nothing 1) Suppose that this person enters the competition 5 times.What is the probability they break even?(Hint: To break even they would need to win the $50 prize twice and lose the other three times. Use a modified binomial to calculate this probability.)
4. A merchant stocks a certain perishable item. He knows that on any given day, he will have a demand for either 2, 3, or 4 of this items with probabilities 0.1, 0.4 and 0.5 respectively. What is the average daily demand?
The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. Decision Alternative = States of Nature 51 52 53 d₁ d₂ Suppose that the decision maker obtained the probabilities P(s₁) = 0.65, P(5₂) = 0.15, and P(53) = 0.20. Use the expected value approach to determine the optimal decision. EV(d₁) EV(d₂) = The optimal decision is? . 240 90 90 15 90 65
The accompanying data came from a study of collusion in bidding within the construction industry. No. Bidders No. Contracts 2 3 4 5 6 7 8 9 10 11 USE SALT 8 20 26 18 12 8 6 7 4 3 (a) What proportion of the contracts involved at most five bidders? At least five bidders? (Round your answers to four decimal places.) at most five bidders. at least five bidders X X (b) What proportion of the contracts involved between five and 10 bidders, inclusive? Strictly between five and 10 bidders? (Round your answers to four decimal places.) between five and 10 bidders, inclusive strictly between five and 10 bidders X X
H1.
In testing a certain kind of truck tire over rugged terrain, it is found that 39% of the trucks fail to complete the test run without a blowout. Of the next 15 trucks tested, find the probability that at least 3 trucks have blowouts.
A payoff table is given as S1 S2 S3 D1 250 750 500 D2 300 -250 1200 D3 500 500 600 a. What choice should be made by the optimistic decision maker? b. What choice should be made by the conservative decision maker? c. What decision should be made under minimax regret? d. If the probabilities of d1, d2, and d3 are .2, .5, and .3 respectively, then what choice should be made under expected value?
In the following profit payoff table for a decis problem with two states of nature and three alternatives, the prior probabilities for s1 and P(81) = .8 and P(82) = .2. Excel File: data20-15.xls State of Nature Decision Alternative $2 d, dz dz 15 10 12 20 10 a. What is the optimal decision? - Select your answer - b. Find the EVPI. c. Suppose that sample information I is obta with P(I|81) = .20 and P(I|82) = .75. Find the posterior probabilities P(81|1) and P(s; decimals). P(81|I) = P(82\I) =
A company is facing three types of decisions for the purchasing of a seasonal product. The profitprojection may depend on the demand level. The payoffs for the situations are given in the followingtable:DemandDecision High (s1) Medium (s2) Low (s3)d1 60 60 50d2 80 80 30d3 100 70 101. If the prior probabilities are 0.3, 0.3, and 0.4, respectively, what is the recommended decision?Show all the calculations and answer with a decision tree.2. At each preseason sales meeting, the vice president of sales provides a personal opinion regarding potential demand for the product. The prediction of the vice president have alwaysbeen either excellent (E) or very good (G). Posterior probabilities are as follows.P(V)=0.7; P(E)=0.3P(s1|E)=0.34; P(s1|V)=0.2P(s2|E)=0.32; P(s2|V)=0.26;Use a decision tree to give the optimal decision strategy.43. Give the EVPI and the EOL, and EVSI.4. Suppose that the prior probability of a low demand is always fixed to 0.4, give a sensitivityanalysis on the other…
A cellphone provider has the business objective of wanting to determine the proportion of subscribers who would upgrade to a new cellphone with improved features if it were made available at a substantially reduced cost. Data are collected from a random sample of 500 subscribers. The results indicate that 123 of the subscribers would upgrade to a new cellphone at a reduced cost. Reducing the price will be profitable if at least 20% of the subscribers would upgrade. Complete parts (a) and (b) below. a. At the 0.05 level of significance, is there evidence that more than 20% of the customers would upgrade to a new cellphone at a reduced cost? Determine the null hypothesis, Ho, and the alternative hypothesis, H₁ . ▶
The Arrow-Pratt measures of absolute and relative risk aversion respectively describe the willingness of a consumers to risk a fixed amount of wealth or a fixed fraction of their wealth. This problem will demonstrate this by setting up a simple investment problem. Suppose that consumers begin with initial wealth Wo and may buy shares of a risky asset whose payoff per share is given by 2. (1 w/ prob. P, X = 1-1 w/ prob.1– p. Therefore buying { shares of the risky asset yields final wealth W = Wo +X. Suppose that each consumer may buy an unlimited number of shares, and seeks to maximize expected utility of final wealth max E[u(W)]. (a) Expand the consumer's expected utility maximization problem, and find the first order condition. (b) Let Cara be a consumer whose utility function exhibits constant absolute risk aver- sion UA(W) = 1– e-aW Find Cara's optimal number of shares and show that it does not depend on her starting wealth Wo-
Consider the following game in a game arcade. The probability of winning a game is p and hence loosingthe game is 1 − p. In order to win a prize you are given three choices:• A: win at least once in 6 games;• B: win at least twice in 12 games; and• C: win at least 3 times in 18 games.1. If p = 16 which of A, B, or C should you choose to maximize your probability of winning the prize?You are required to compute the probabilities for each option to justify your answer.2. Using the formulas derived in part (1), write a R-code to compute (not simulate) and plot the probabilityof winning the prize for options A, B, and C for different values of p varying from 0.1 to 0.9 inincrements of 0.1. Summarize your observation.Regarding the plot: i) All three curves should be drawn in the same plot, ii) Make sure that the threecurves are distinguishable (using different line styles, colors, and/or markers), and iii) make sure toadd a legend that identifies the curves for the three different options…