Unformatted text preview: regret values for the (e).Suppose the decision maker believes that the probabilities of Order 400 textbooks. Minimax Regret = $920 manager in the following table the classes offered are very appropriate. What is the best decision (f). If someone has a crystal ball (perfect information) which tells the if the manager uses the expected money value criterion? What is Number
Number of classes
classes offered is going to be 9, what is the best decision and what is the expected payoff value? EMV(300)=2828, EMV(400)=3252, of
offered(states of
the value of this information? Best Decision if the classes offered is 9: textbooks
nature/business)
EMV(500)=3288. Best Decision by Expected Money Value: Order To order
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8
9
10
Order 500 textbooks. Payoff =$3600. VPI (Class=9) =3600 500 textbooks. 300
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 Fall '08
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 Management, Game Theory, Critical path method, Minimax, Infogap decision theory

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