MBA 550 Ch 12 Class Notes

MBA 550 Ch 12 Class Notes - Car Problem N Z(N) 3...

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Car Problem N Z(N) 3 -0.9647638212 3 -0.9647638212 5 -0.0877058019 7 0.7893522174 8 1.227881227 5.2 2.280351
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Criteria of Realism Stand Dev = .9 Types of tables/State of Nature Economic Crash Status Qua Boom Time Maxi-Max Maxi-Min Laplace Hurwicz Bingo Parlor 1000 3000 5000 5000 1000 3000 .5/5000+.1*1000=45000+100 = 46000 4600 Gas Station 2000 2000 2000 2000 2000 2000 2000 2000 Discount Store 7000 2000 1000 7000 1000 3333 .9*7000+ .1*1000 6400 max function min function average function min our max regret Alternatives Answers Regret Table - compute down and across Economic Crash Status Qua Boom Time Bingo Parlor 1000 3000 5000 Gas Station 2000 2000 2000 Discount Store 7000 2000 1000 Max made - what we 7000 3000 5000 How much we lost by making this choice Max regret Bingo Parlor 6000 0 0 6000 Gas Station 5000 1000 3000 5000 Discount Store 0 1000 4000 4000 least amount of regret - so open a discount store
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Maximax Homer uses Crash Status Qua Boom Time Maximun Bingo Parlor 1000 3000 5000 5000 Gas Station 2000 2000 2000 2000
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MBA 550 Ch 12 Class Notes - Car Problem N Z(N) 3...

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