The Oakland Bombers professional basketball team just missed making the playoffs last season and believes it needs to sign only one very good free agent to make the playoffs next season. The team is considering four players: Barry Byrd, Rayneal O’Neil, Marvin Johnson, and Michael Gordan. Each player differs according to position, ability, and attractiveness to fans. The payoffs (in $1,000,000s) to the team for each player, based on the contract, profits from attendance, and team product sales for several different season outcomes, are provided in the following table: Player Season Outcome Loser Competitive Makes Playoffs Byrd -3.2 1.3 4.4 O’Neil -5.1 1.8 6.3 Johnson -2.7 0.7 5.8 Gordan -6.3 -1.6 9.6 Determine the best decision, using the following decision criteria. Maximax Maximin Hurwicz (α=.60)
The Oakland Bombers professional basketball team just missed making the playoffs last season and believes it needs to sign only one very good free agent to make the playoffs next season. The team is considering four players: Barry Byrd, Rayneal O’Neil, Marvin Johnson, and Michael Gordan. Each player differs according to position, ability, and attractiveness to fans. The payoffs (in $1,000,000s) to the team for each player, based on the contract, profits from attendance, and team product sales for several different season outcomes, are provided in the following table:
|
Player |
Season Outcome |
||
|
Loser |
Competitive |
Makes Playoffs |
|
|
Byrd |
-3.2 |
1.3 |
4.4 |
|
O’Neil |
-5.1 |
1.8 |
6.3 |
|
Johnson |
-2.7 |
0.7 |
5.8 |
|
Gordan |
-6.3 |
-1.6 |
9.6 |
Determine the best decision, using the following decision criteria.
- Maximax
- Maximin
- Hurwicz (α=.60)
- Equal likelihood
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