This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Use α = 0.8. $272.000 f. Develop an Opportunity Loss Table g. What is the Minimax Regret Decision? 161,667 I don’t know if I am calculating the negative numbers correctly 2. A concessionaire for the local ballpark has developed a table of conditional values for the various alternatives (stocking decisions) and states of nature (size of crowd). Stocking Decision Large Crowd ($) Average Crowd ($) Small Crowd ($) Large Inventory $22,000 $12,000-$2,000 Average Inventory $15,000 $12,000 $6,000 Small Inventory $9,000 $6,000 $5,000 If the probabilities associated with the states of nature are 0.30 for a large crowd, 0.50 for an average crowd, and 0.20 for a small crowd, determine: a. The alternative that provides the greatest expected monetary value (EMV ). The max EMV $12,200 b. The expected value of perfect information (EVPI). 13800 -12200 =$1,600...
View Full Document
- Fall '09
- Game Theory, Filling station, Minimax, Small Crowd