DecisionAnalysisPartI(1,15)

# DecisionAnalysisPartI(1,15) - Maximin criterion...

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Decision Analysis - Part I Dr. Leyla Ozsen

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What is Decision Analysis?
Decision-Making without Probabilities Maximax criterion (optimistic) Maximin criterion (pessimistic) Minimax Regret Hurwicz Solution Equal Likelihood Solution

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Decision-Making with Probabilities Expected Value Expected Value of Perfect Information Sequential Decision Trees
Decision-Making without Probabilities; Example   Good   Poor   8 0 0 ,0 0 0   5 0 0 ,0 0 0   1,3 0 0 0 ,0 0 0   -15 0 ,0 0 0   3 2 0 ,0 0 0   3 2 0 ,0 0 0   Would you choose option C under any condition?

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Maximax criterion (optimistic)

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Unformatted text preview: Maximin criterion (pessimistic) Minimax Regret Hurwicz Criterion Equal Likelihood Question • How would your answers change if you are given a cost table instead of profit table? Example Give n t h e pr of it t ab le b e lo w, d e t e r m ine t h e b e s t inve s t m e nt us ing t h e f ive c r it e r ias we h ave d is c us s e d . Good Fair Poo r A 8 0 0 ,0 0 0 6 5 0 ,0 0 0 5 0 0 ,0 0 0 B 1,3 0 0 ,0 0 0 6 5 0 ,0 0 0 -15 0 ,0 0 0 C 1,3 2 0 ,0 0 0 5 0 0 ,0 0 0 3 2 0 ,0 0 0...
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## This note was uploaded on 10/08/2011 for the course IE 383 taught by Professor Leyla,o during the Spring '08 term at Purdue.

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DecisionAnalysisPartI(1,15) - Maximin criterion...

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