Price Estimation of various option showed in the table below Bid Price Option   High Normal Low a1 85 60 50 a2 60 60 60 a3 90 50 40 Based on past experience, probability of bid price on each option the price probability in high price is 0,30. Normal is 0,50 and low is 0,20. Question  Decide which alternative to choose based on a.Minimax Regret b.Hurwitz =0,45 c.EVPI

Practical Management Science
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Chapter2: Introduction To Spreadsheet Modeling
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Price Estimation of various option showed in the table below

Bid Price Option

  High Normal Low
a1 85 60 50
a2 60 60 60
a3 90 50 40

Based on past experience, probability of bid price on each option the price probability in high price is 0,30. Normal is 0,50 and low is 0,20.

Question

 Decide which alternative to choose based on

a.Minimax Regret

b.Hurwitz =0,45

c.EVPI

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