Problem 8

Problem 8 - 15000 Chose Motel d. Hurxicz Motel 20,000*0.4 +...

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Chapter 12 Problem #8 Invest Shortage Stable Surplus Motel -8000 15000 20000 Restaurant 2000 8000 6000 Theatre 6000 6000 5000 a. Maximax: (20, 8, 6) = 20,000 b. Maximin: (-8, 2, 5) = 5,000 c. Minimax Regret Shortage= 6000 Stable= 15000 Surplus = 20000 Motel -2000 0 0 Restaurant 4000 7000 14000 Theatre 0 9000
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Unformatted text preview: 15000 Chose Motel d. Hurxicz Motel 20,000*0.4 + -8000*0.6 = 3200 Restaurant8000*0.4 + 2000*0.6 = 4,400 Theatre 6000*0.4 + 5000*0.6 = 5400 e. equal likelihood (-8000+15000+20000)/3 = 9000 (2000+8000+6000)/3=5333.33 (6000+6000+5000)/3= 5666.67...
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This note was uploaded on 09/24/2010 for the course BU 628 taught by Professor Dr.tapp during the Spring '10 term at Georgian.

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