XYZ work in a small electric business in Basrah city. He had a sunshine controller device. He had to decide how to market his idea, and in the short term, his options could be summarised as selling the device locally, selling nationally through a website, entering a partnership with an existing company or selling the patent. His returns depended on demand, which he described as high, medium, or low. Using this simple model, he developed the matrix of potential annual gains shown below: Options Demand High Medium Low Market locally 60 90 45 Use website Partnership 23 90 78 12 25 89 Sell patent 30 30 30 Identify the decision taken under the following approaches: (1) Equal probability (2) Regret (3) Hurwicz criterion. Note: The decision maker's degree of Pessimistic (a) is 0.3.
XYZ work in a small electric business in Basrah city. He had a sunshine controller device. He had to decide how to market his idea, and in the short term, his options could be summarised as selling the device locally, selling nationally through a website, entering a partnership with an existing company or selling the patent. His returns depended on demand, which he described as high, medium, or low. Using this simple model, he developed the matrix of potential annual gains shown below: Options Demand High Medium Low Market locally 60 90 45 Use website Partnership 23 90 78 12 25 89 Sell patent 30 30 30 Identify the decision taken under the following approaches: (1) Equal probability (2) Regret (3) Hurwicz criterion. Note: The decision maker's degree of Pessimistic (a) is 0.3.
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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decision support systems
Transcribed Image Text:XYZ work in a small electric business in Basrah city. He had a
sunshine controller device. He had to decide how to market his
idea, and in the short term, his options could be summarised as
selling the device locally, selling nationally through a website,
entering a partnership with an existing company or selling the
patent. His returns depended on demand, which he described
as high, medium, or low.
Using this simple model, he developed the matrix of potential
annual gains shown below:
Options
Demand
High
Medium
Low
Market locally
Use website
Partnership
60
90
45
23
90
78
12
25
89
Sell patent
30
30
30
Identify the decision taken under the following approaches:
(1) Equal probability
(2) Regret
(3) Hurwicz criterion.
Note: The decision maker's degree of Pessimistic (a) is 0.3.
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