Decision Science

Decision Science - 30000 35000 MAX MIN EMV...

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Fixed Monthly Payment Miles Driven Plan 15000 20000 25000 30000 35000 -200 I -4800 -4800 -4800 -4800 -4800 -300 II -7200 -7200 -7200 -7200 -7200 -170 III -4080 -4080 -4080 -4080 -4080 Additional Cost Per Mile Miles Driven Plan 15000 20000 25000 30000 35000 -0.1 I -1425 -1900 -2375 -2850 -3325 II -816 -1066 -1316 -1566 -1816 III -1260 -1960 -2660 -3360 -4060 Miles Driven Plan 15000 20000 25000
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Unformatted text preview: 30000 35000 MAX MIN EMV I-6225-6700-7175-7650-8125 -6225 -8125-7317.5 II-8016-8266-8516-8766-9016 -8016 -9016-8591 III-5340-6040-6740-7440-8140 -5340 -8140-6950 Probability 0.1 0.2 0.2 0.3 0.2 b) Maximax payoff =-5340 Decision plan III c) Maximin payoff =-8125 Decision plan I e) EMV payoff =-6950 Decision plan III...
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This note was uploaded on 11/22/2010 for the course BUSI 508 taught by Professor Thomas during the Summer '10 term at Columbia College.

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