Chapter 11 solvedprob11_1_2 - Alternatives Alternative A...

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Solved Problem I (profit maximization) State of Nature Maximax (a) Criterion Alternatives #1 #2 #3 Max. payoff Choice Alternative A 12.0000 18.0000 15.0000 18.0000 Alternative B 17.0000 10.0000 14.0000 17.0000 Alternative C 22.0000 16.0000 10.0000 22.0000 Select Alternative D 14.0000 14.0000 14.0000 14.0000 State of Nature Equally Likely (d) Criterion Alternatives #1 #2 #3 Average Payoff Choice Alternative A 12.0000 18.0000 15.0000 15.0000 Alternative B 17.0000 10.0000 14.0000 13.6667 Alternative C 22.0000 16.0000 10.0000 16.0000 Select Alternative D 14.0000 14.0000 14.0000 14.0000 Opportunity Loss Table for Solved Problem 1 State of Nature Minimax (c) Criterion Alternatives #1 #2 #3 Max regret Choice Alternative A 10.0000 0.0000 0.0000 10.0000 Alternative B 5.0000 8.0000 1.0000 8.0000 Alternative C 0.0000 2.0000 5.0000 5.0000 Select Alternative D 8.0000 4.0000 1.0000 8.0000
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Maximin (b) Criterion Min. payoff Choice 12.0000 10.0000 10.0000 14.0000 Select Hurwicz (e) Criterion Realism payoff Choice 14.4000 12.8000 14.8000 Select 14.0000 = 0.4000 α
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This note was uploaded on 05/04/2008 for the course ACCT 401 taught by Professor Lewis during the Spring '08 term at West Virginia University at Parkersburg.

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Chapter 11 solvedprob11_1_2 - Alternatives Alternative A...

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