The New England Bombers professional basketball teamjust missed making the playoffs last season and believes itonly needs to sign one very good free agent to make theplayoffs next season. The team is considering four players:Jamelle Morris, Rayneal O’Neal, Marvin Jackson, andMichael Gordon. Each player differs according to position,ability, and attractiveness to fans. The payoffs (in $ millions)to the team for each player based on their contract, profitsfrom attendance, and team product sales for several differentseasonal outcomes are provided in the following table. Determine the best decision using the following decisioncriteria.a. Maximaxb. Maximinc. Hurwicz ( = .25)d. Equal likelihood e. The Bombers’ management has determined the follow-ing probabilities of the occurrence of each future sea-sonal outcome for each player. Season OutcomePlayer Loser Competitive PlayoffsMorris $—3.2 $1.3 $4.4O'Neal —5.1 1.8 6.3Jackson —2.7 0.7 5.8Gordon —6.3 —1.6 9.6
The New England Bombers professional basketball team
just missed making the playoffs last season and believes it
only needs to sign one very good free agent to make the
playoffs next season. The team is considering four players:
Jamelle Morris, Rayneal O’Neal, Marvin Jackson, and
Michael Gordon. Each player differs according to position,
ability, and attractiveness to fans. The payoffs (in $ millions)
to the team for each player based on their contract, profits
from attendance, and team product sales for several different
seasonal outcomes are provided in the following table.
Determine the best decision using the following decision
criteria.
a. Maximax
b. Maximin
c. Hurwicz ( = .25)
d. Equal likelihood
e. The Bombers’ management has determined the follow-
ing probabilities of the occurrence of each future sea-
sonal outcome for each player.
Season Outcome
Player Loser Competitive Playoffs
Morris $—3.2 $1.3 $4.4
O'Neal —5.1 1.8 6.3
Jackson —2.7 0.7 5.8
Gordon —6.3 —1.6 9.6
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