Information Flow

# What is the maximum average amount pickens pays for

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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 7 8 9 10 Order 500 textbooks. Payoff =\$3600. VPI (Class=9) =3600- 500 textbooks. 300 0 1...
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