What is the answer in number 4? SavedProctoring Enabled: Chapter 9 Decision Analysis . iA decision maker has prepared the following payoff table.4States of NatureAlternativeHighLow85-5BuyRent75404545LeaseUsing the Maximin criterion, what is the best decision and the expected payoff?Best decisionPayoff

Answered: A decision maker has prepared the…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The following payoff table provides profits based on various possible decision alternatives and various levels of demand. ALTERNATIVE DEMAND LOW MEDIUM HIGH Alternative 1 40 80 150 Alternative 2 80 120 130 Alternative 3 100 100 100 a. Which alternative would a pessimist choose? b. Which alternative would an optimist choose? c. Which alternative should be chosen using the Hurwicz decision criterion with α = 0.4?
The Navy uses a certain type of vacuum tube in a sonar scanning device. Based on past experience, the vacuum tube exhibits the following failure pattern: Number of Months of Operation Probability of Failure1 0.12 0.13 0.24 0.15 0.36 0.2 Failures during operation cost $200 each, but the tube can be replaced before failure for $50. Find the optimal replacement strategy.
Consider the following profit payoff table and probability assessments: States of Nature Decision Alternative s1 s2 s3 s4 d1 14 9 10 5 P(s1)= 0.5 d2 11 10 8 7 P(s2)= 0.2 d3 9 10 10 11 P(s3)= 0.2 d4 8 10 11 13 P(s4)= 0.1 a. Use the expected value approach to determine the optimal solution. b. If the entries in the payoff table are costs, determine the optimal decision using the expected value approach.
Use answers to Q3b to determine a maximum and minimum expected value for the settlement
The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: State of Nature Decision Alternative S1 S2 S3 d1 250 100 25 d2 100 100 75 1) Construct a decision tree for this problem. 2) If the decision maker knows nothing about the probabilities of the three states of nature, what is the recommended decision using the optimistic, conservative, and minimax regret approaches?
The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature.
In a recent poll, a random sample of adults in some country (18 years and older) was asked, "When you see an ad emphasizing that a product is "Made in our country," are you more likely to buy it, less likely to buy it, or neither more nor less likely to buy it?" The results of the survey, by age group, are presented in the following contingency table. Complete parts (a) through (c). Purchase likelihood 18 dash 3418-34 35 dash 4435-44 45 dash 5445-54 55 plus55+ Total Open in StatCrunch + Copy to Clipboard + Open in Excel + More likelyMore likely 233233 361361 381381 407407 13821382 Less likelyLess likely 2323 1010 2222 1212 6767 Neither more nor less likelyNeither more nor less likely 298298 209209 174174 126126 807807 Total 554554 580580 577577 545545 22562256 (a) What is the probability that a randomly selected individual is 35 to 4435 to 44 years…
In a recent poll, a random sample of adults in some country (18 years and older) was asked, "When you see an ad emphasizing that a product is "Made in our country," are you more likely to buy it, less likely to buy it, or neither more nor less likely to buy it?" The results of the survey, by age group, are presented in the following contingency table. Complete parts (a) through (c). Purchase likelihood 18 dash 3418-34 35 dash 4435-44 45 dash 5445-54 55 plus55+ Total Open in StatCrunch + Copy to Clipboard + Open in Excel + More likelyMore likely 233233 361361 381381 407407 13821382 Less likelyLess likely 2323 1010 2222 1212 6767 Neither more nor less likelyNeither more nor less likely 298298 209209 174174 126126 807807 Total 554554 580580 577577 545545 22562256 (a) What is the probability that a randomly selected individual is 35 to 4435 to 44 years…
Assume that the payoff table provides cost rather than profit payoffs. What is the recommended decision using: Optimistic, Conservative, Minmax Regret, And Laplace Method
Sony Electronics produces a wide variety of electronic products for the consumer marketplace, such as laptop computers, PlayStation game consoles, and tablet computers. What type of products would these be considered in the Supply Chain Uncertainty Framework?
A group of medical professionals is considering constructing a private clinic. If a patient demand for the clinic is high, the physicians could realize a net profit of $120,000. If the demand is low, they could lose $55,000. Of course, they do not have to proceed at all, in which case there is no cost. In the absence of any market data, the best the physicians can guess is that there is a 50-50 chance the demand would be high. a) Create a decision tree. b) What should the medical professionals do? What is the payoff? c) The physicians have been approached by a market research firm that offers to perform a study of the market at a fee of $5,000. The market researchers claim that their experience enables them to use Bayes’ theorem to make the following statements of probability: -probability of high demand given a positive survey result = 0.82 -probability of low demand given a positive survey result = 0.18 -probability of high demand given a negative survey result = 0.11 -probability of…
For the following payoff table, the probability of event 1 is 0.8, the probability of event 2 is 0.1, and the probability of event 3 is 0.1 ACTION ACTION EVENT A ($) B ($) 1 50 10 2 300 100 3 500 200 a. Determine the optimal action based on the maximax criterion b. Determine the optimal action based on the maximin criterion c. Explain the meaning of the Expected Value of Perfect Information (EVPI) in this problem

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A decision maker has prepared the following payoff table. 4 States of Nature Alternative High Low 85 -5 Buy 75 40 Rent 45 45 Lease Using the Maximin criterion, what is the best decision and the expected payoff? Best decision Payoff