10. Lab Week 10 Problem Solutions

10. Lab Week 10 Problem Solutions - Lab Week 10 Problem...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Lab Week 10 Problem Solutions CHAPTER 10 DECISION ANALYSIS 7. a. Using minimax criteria, we are selecting the lowest of the highest costs per row (85, 60, 90). This tells us to select new staff . b. Using minimin , we select the lowest of the lowest cost per row (50, 60, 40). This tells us to select redesign collection. c. Minimax regret. Construct opportunity loss table. Select best alternative from each column (state of nature) and subtract each cell amount from that value. S 1 = 40, S 2 = 50, S 3 = 60 State of Nature Alternative Moderate High Very High Reassign 10 10 25 New 20 10 0 Redesign 0 0 30 Next, we choose the min of 25, 20, and 30 (thmme max regret in each row) to minimize our total “regret.” Thus we choose new staff. d. Equally likely is just an average of each cost row Reassign = (50+60+85)/3 = 65 New Staff = (60 + 60 + 60)/3 = 60 Redesign = (40 + 50 + 90)/3 = 60 Since the equally likely values are the same for new staff and redesign we are indifferent between the two choices.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern