Fill in the regret values for the esuppose the

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Unformatted text preview: ject with the new deadline as compared to the old 3. (a). What is the best decision if the value? Best Decision by Maximax: Order 600 textbooks deadline? P(X<=94)=P(Z<=(94-84)/6.41396)=P(Z<=1.56)=0.9406. manager is very optimistic (i.e., uses the This increases the chance of meeting deadline by 0.9406maximax criterion)? What is the (b). What is the best decision if the manager is very 0.000910=0.93969 -! 94%. Maximax Payoff =$4200 maximax payoff value? Best Decision by pessimistic (i.e., uses the maximin criterion)? What is the (d). What is the best decision if the manager wishes to minimize the Maximax: Order 600 textbooks Maximax maximin payoff value? Best Decision by Maximin: Order 400 firm’s maximum regret (i.e., uses the minimax regret criterion)? Payoff =$4200 textbooks Maximin Payoff = $3000 What is the minimax regret value? Best Decision by minimax regret: (c). Fill in the...
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