Come up with a decision using each of the different criteria under conditions of uncertainty using the table below. The payoff values are expressed as LOSSES and alpha = 0.5 *(a) What is the best of the best payoff value? (b) Which decision alternative has the best of the worst payoff value?(c) Which decision alternative has the minimum payoff value of the maximum regret? (d) Which realism approach decision alternative has the maximum payoff?(e) What is the best equally likely decision to take? State of Nature (Production Rate)AlternativesVery LowLowModerateHighMachine Brand AMachine Brand B163125-87-1958128-90-59Machine Brand C3640185-21Machine Brand D13-56-71106Machine Brand E11148-55107Machine Brand FMachine Brand G-98-94-24-3317616516

Answered: Come up with a decision using each of…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Come up with a decision using each of the different criteria under conditions of uncertainty using the table below. The payoff values are expressed as LOSSES and alpha = 0.5 *

(a) What is the best of the best payoff value?

(b) Which decision alternative has the best of the worst payoff value?

(d) Which realism approach decision alternative has the maximum payoff?
(e) What is the best equally likely decision to take?

Transcribed Image Text:State of Nature (Production Rate) Alternatives Very Low Low Moderate High Machine Brand A Machine Brand B 163 125 -87 -19 58 128 -90 -59 Machine Brand C 36 40 185 -21 Machine Brand D 13 -56 -71 106 Machine Brand E 111 48 -55 107 Machine Brand F Machine Brand G -98 -94 -24 -33 176 165 16

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