The product manager of a tide and he is planning to launch a new product. He can either launch Tide with Zonrox, Tide with Downy, or not do anything at all. If he will launch Tide with Zonrox, the company will gain P20,000 if the market is successful or lose P18,000 if the market is a failure. If he will launch Tide with Downy, the company will gain P12,000 if the market is successful or lose P3,000 if the market is a failure. If he does not launch anything, the company will not gain anything whether the market is successful or a failure. The probability is 60% that the market is successful and 40% that the market is a failure. Probability Maximum Opportunity Loss Minimum Perfect Probability Expected Monetary Value (EMV) Expected Value of Perfection (EVPI) Decision Analysis: a. Maximax Criterion: b. Maximin Criterion: c. Minimax Criterion: d. EMV Maximax Maximin EMV Minimax
The product manager of a tide and he is planning to launch a new product. He can either launch Tide with Zonrox, Tide with Downy, or not do anything at all. If he will launch Tide with Zonrox, the company will gain P20,000 if the market is successful or lose P18,000 if the market is a failure. If he will launch Tide with Downy, the company will gain P12,000 if the market is successful or lose P3,000 if the market is a failure. If he does not launch anything, the company will not gain anything whether the market is successful or a failure. The probability is 60% that the market is successful and 40% that the market is a failure. Probability Maximum Opportunity Loss Minimum Perfect Probability Expected Monetary Value (EMV) Expected Value of Perfection (EVPI) Decision Analysis: a. Maximax Criterion: b. Maximin Criterion: c. Minimax Criterion: d. EMV Maximax Maximin EMV Minimax
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:The product manager of a tide and he is planning to launch a new product. He can either launch Tide with Zonrox, Tide
with Downy, or not do anything at all. If he will launch Tide with Zonrox, the company will gain P20,000 if the market
is successful or lose P18,000 if the market is a failure. If he will launch Tide with Downy, the company will gain P12,000
if the market is successful or lose P3,000 if the market is a failure. If he does not launch anything, the company will not
gain anything whether the market is successful or a failure. The probability is 60% that the market is successful and
40% that the market is a failure.
Probability
Maximum
Opportunity Loss
Minimum
Perfect Probability
Expected Monetary Value (EMV)
Expected Value of Perfection (EVPI)
Decision Analysis:
a. Maximax Criterion:
b. Maximin Criterion:
c. Minimax Criterion:
d. EMV
panii
Maximax
Maximin
EMV
Minimax
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