Zaki has been thinking about starting his own petrol station. He’s problem is to decide how large his petrol station should be. The annual return that will be achieved depends on whether the economy is good, fair, or poor. A payoff table has been constructed to illustrate this situation: (Business Quantitative Analysis) Determine using the best investment using the following decision criteria: a) Maximax criterion b) Maximin criterion c) Equally Likely criterion d) Minimax Regret criterion The probabilities of good market, average market, and poor market are 0.4, 0.5, and 0.1 respectively. Construct an expected opportunity loss table. Using minimum EOL as the decision criterion, determine the best alternative
Zaki has been thinking about starting his own petrol station. He’s problem is to decide how large his petrol station should be. The annual return that will be achieved depends on whether the economy is good, fair, or poor. A payoff table has been constructed to illustrate this situation: (Business Quantitative Analysis)
Determine using the best investment using the following decision criteria: a) Maximax criterion
b) Maximin criterion
c) Equally Likely criterion
d) Minimax Regret criterion
The probabilities of good market, average market, and poor market are 0.4, 0.5, and 0.1 respectively. Construct an expected opportunity loss table. Using minimum EOL as the decision criterion, determine the best alternative
![Fund
Market, Returns (RM in millions)
Good Market
Fair Market
Poor Market
Small
30,000
10,000
-5,000
Medium
60,000
20,000
-15,000
Large
80,000
20,000
-35,000
Very large
280,000
15,000
-155,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdceabba7-44c5-4f5a-b9e5-dab34adb1650%2Fdf3ad30b-9350-421b-babc-4a9dc0b9b9e0%2Fejrgqef_processed.jpeg&w=3840&q=75)
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