Topic: Operations Research - Decision Making Under Uncertainty 4 Methodologies can be use but which of these methods is the best to be used: 1st Method: Maximin Criterion - Risk Averse Behavior 2nd Method: Minimax Regret Criterion - Lost Opportunity 3rd Method: Maximax Criterion - Risk Seeking Behavior 4th Method: Laplace Criterion - The Average Based on the problem below 1. You are given the payoff matrix below: Alternative 1 Alternative 2 Alternative 3 Alternative 4 SoN 1 0 0.09 0.72 1 SoN 2 0.15 0.38 0.53 0.48 SoN 3 1 0.43 0.02 0 Using the four methodologies had mentioned above for decision-making under uncertainty, determine which alternative you will choose for each of those methodologies. (Show a solution on every 4 methodologies and give the best method can be use with final conclusion among of these methods were given above)
Topic: Operations Research - Decision Making Under Uncertainty
4 Methodologies can be use but which of these methods is the best to be used:
1st Method: Maximin Criterion - Risk Averse Behavior
2nd Method: Minimax Regret Criterion - Lost Opportunity
3rd Method: Maximax Criterion - Risk Seeking Behavior
4th Method: Laplace Criterion - The Average
Based on the problem below
1. You are given the payoff matrix below:
|
|
Alternative 1 |
Alternative 2 |
Alternative 3 |
Alternative 4 |
|
SoN 1 |
0 |
0.09 |
0.72 |
1 |
|
SoN 2 |
0.15 |
0.38 |
0.53 |
0.48 |
|
SoN 3 |
1 |
0.43 |
0.02 |
0 |
Using the four methodologies had mentioned above for decision-making under uncertainty, determine which alternative you will choose for each of those methodologies. (Show a solution on every 4 methodologies and give the best method can be use with final conclusion among of these methods were given above)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 5 images
