The following payoff table provides profits based on various possible decision alternatives and various levels of demand. ALTERNATIVE DEMAND LOW MEDIUM HIGH Alternative 1 40 80 150 Alternative 2 80 120 130 Alternative 3 100 100 100 a. Which alternative should be chosen using the equally likely decision criterion? b. Set-up the opportunity loss table. c. Which alternative should be chosen using the minimax regret criterion?
The following payoff table provides profits based on various possible decision alternatives and various levels of demand. ALTERNATIVE DEMAND LOW MEDIUM HIGH Alternative 1 40 80 150 Alternative 2 80 120 130 Alternative 3 100 100 100 a. Which alternative should be chosen using the equally likely decision criterion? b. Set-up the opportunity loss table. c. Which alternative should be chosen using the minimax regret criterion?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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The following payoff table provides profits based on various possible decision alternatives and various levels of demand.
|
ALTERNATIVE |
DEMAND |
||
|
LOW |
MEDIUM |
HIGH |
|
|
Alternative 1 |
40 |
80 |
150 |
|
Alternative 2 |
80 |
120 |
130 |
|
Alternative 3 |
100 |
100 |
100 |
a. Which alternative should be chosen using the equally likely decision criterion?
b. Set-up the opportunity loss table.
c. Which alternative should be chosen using the minimax regret criterion?
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