Review of Lecture 2_9_7_2011

Review of Lecture 2_9_7_2011 - (e) How to define...

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Review for Lecture 2 on Sept. 7 (W) and HW assignment: 1. Assumptions of Decision Theory and Decision Matrix; (a) Known alternatives, for example, Build Large, Build Median, or Build Large; (b) Known the state of nature, for example, Favorable/Unfavorable Market; Up/the same/Down Market. 2. Decision Making Under Uncertainty (a) MaxMax(Payoff) --- see power point and the given numeric example there (b) MaxMin(Payoff) --- see power point and the given numeric example there ( c) MinMax(Cost) --- it’s not covered in class, but it is very easy to figure out. See examples in the textbook and our HW assignments. (d) MinMin(Cost) --- it’s not covered in class, but it is very easy to figure out. See examples in the textbook and our HW assignments.
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Unformatted text preview: (e) How to define “Regrets” and MinMax(Regrets) --- see power point and the given numeric example there (f) Laplace method --- see power point and the given numeric example there 3. Decision Making Under Risk (a) Expected Monetary Value (EMV) criteria --- see power point and the given numeric example there (b) Expected Value of Perfect Information (EVPI) --- see power point and the given numeric example there (c) Sensitivity Analysis --- see power point and the given numeric example there 4. Decision Tree --- see power point and the given numeric example there 13. Decision Analysis (Section 3.7 and 3.8 will not be in the test.) HW Assignment: Ch. 3: #16, 17, 19, 20-28....
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This note was uploaded on 09/21/2011 for the course QMSC 3321 taught by Professor Louieren during the Fall '11 term at University of Houston-Victoria.

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