The decision table for the decision. Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

Question

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Answer 1

Question

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

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 alternatives.

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making 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.

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

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Even though independent gasoline stations have been having a difficult time. Murad has been thinking about starting her own independent gasoline station. Murad's problem is to decide how large his station would be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, Murad developed the following table: Size of the first station Small Medium Large Very large Probability Good market,$ 50 000 80 000 100 000 300 000 20% Fair market,$ 20 000 30 000 30 000 25 000 30% a) what is the maximax decision? b) what is the maximin decision c) what is the equally likely decision (Laplace) d) What is the Expected Monetary Value Criterion (EMV Criterion) Poor market, $ -10 000 -20 000 -40 000 -160 000 50%

Answer 2

Question

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

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 alternatives.

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making 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.

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

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Answer 3

Question

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

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 alternatives.

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making 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.

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

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Answer 4

Question

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

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 alternatives.

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making 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.

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

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Answer 5

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

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 alternatives.

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making 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.

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

Answer 6

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

Answer 7

Chapter A, Problem 2P

a)

Summary Introduction

To determine: The decision table for the decision.

Introduction: Decision table is formats or visual representations were data is expressed arranged, determined and calculated to make a effective decision making. A decision table is a tabular representation that is used to analyze decision alternatives and states of nature.

Answer 8

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 alternatives.

Answer 9

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 alternatives.

Answer 10

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making 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.

Answer 11

c.

Summary Introduction

To determine: The minimax decision.

Introduction

Maximin is the decision making method which makes decision making 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.

Answer 12

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

Answer 13

d.

Summary Introduction

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

Answer 14

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

Answer 15

e.

Summary Introduction

To draw: Decision tree. Assume each outcome is equally likely, and find the highest EMV.

Introduction:

Decision tree is graphical representation of decision making process which has state of nature, alternative, payoffs and their probabilities of outcomes.

EMV: It is expected value or payout that has different possible state of nature, each with their associated possibilities.

Formula:

EMV=((Payoff of 1st state of nature)×(Probability of 1st state of nature)+(Payoff of 2nd state of nature)×(Probability of 2nd state of nature)+...+(Payoff of last state of nature)×(Probability of last state of nature))

Here probabilities are equal likely in each case. So probabilities of the be 1/3= 0.3333

Answer 16

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Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. A - Prob. 1DQ Ch. A - Prob. 2DQ Ch. A - Prob. 3DQ Ch. A - Prob. 4DQ Ch. A - Prob. 5DQ Ch. A - Question: 6. Explain how decision trees might be...Ch. A - Prob. 7DQ Ch. A - Prob. 8DQ Ch. A - Question 9. Identify the five steps in analyzing a...Ch. A - Prob. 10DQ

Concept explainers

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 alternatives.

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

Want to see the full answer?

Chapter A Solutions

Concept explainers

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 alternatives.

To determine: Equally likely decision Introduction Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.

Want to see the full answer?

Chapter A Solutions

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 alternatives.

To determine: Equally likely decision

Introduction

Equally likely is the decision method which come decision making under uncertainty. Under this condition, equal probability is assigned under each uncertainty state of nature.