Chapter 5.S, Problem 13P

a)

Summary Introduction

To determine Maximin decision

Introduction:

Maximin is the decision making method which is used to make decision under uncertainty. This method will find an alternative that maximizes the minimum outcome of every alternative or we can say that calculating the minimum outcome within the each alternative.

b)

Summary Introduction

To determine: Maximax decision

Introduction:

Maximax is the decision making method which come decision making under uncertainty. This method finds an alternative that maximizes the maximum outcome of each alternative or we can say that calculating the maximum outcome within every alternative.

c)

Summary Introduction

To determine: Minimax regret decision.

Introduction:

Minimax regret is the decision making method were decision is made on the basis of the expected payoff which should be less than expected, this criteria based to avoid the risk or minimizing the minimum regret here regret is opportunity loss or identifying the worst regret for each alternative

d)

Summary Introduction

To determine: Laplace decision.

Introduction:

Laplace is the decision making method were we will find an average of each alternative and then we select the average best of each alternative.