Use the information of the following payoff table Size of Market factory nature Good Average Bad Factory A 400 300 -100 Factory B 700 500 -200 Factory C 1,100 600 -300 a) Which factory should be built if the investor is very optimistic? Very pessimistic? b) Which factory should be built using minimax regret criterion? c) If the probabilities of Good/Average/Bad market are 0.4, 0.3, and 0.3, respectively, what is the decision of the size of factory using Expected Opportunity Loss (EOL) criterion?
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- Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Regret as an evaluation criterion to evaluate alternatives. Future Demand Alternatives Low Moderate High Small Facility 14 12 13 Medium Facility -1 17 23 Large Facility -5 11 29 Alternatives Worst Regrets Small Facility ? Medium Facility ? Large Facility ? a) The worst regrets for alternative Small Facility is b) The worst regrets for alternative Medium Facility is c) The worst regrets for alternative Large Facility is d) The best course of action or decision by using Minimax Regret is to select ( ) facility1. Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars.State of NatureDecision Alternative Strong Demand S1 Weak Demand S2Small complex, d1 8 7Medium complex, d2 15 3Large complex, d3 20 -82. Suppose PDC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective probability assessment of 0.83 that demand will be strong (S1) and a corresponding probability of 0.17 that demand will be weak (S2). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $17.25 million and as long as the payoff for the weak demand was greater than or equal…Today’s Electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the components. Phyllis Weinberger, who is responsible for advising the president of Today’s Electronics on electronic manufacturing equipment, has developed the following table concerning a proposed facility: Payoffs Outcomes Large facility 550,000 -310,000 Medium-sized facility 300,000 -100,000 Small facility 200,000 -32,000 No facility 0 0 Develop an opportunity loss table. What is the minimax regret decision? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be unpredictable, so Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand for home improvements next year may be either low or high. But Build-Rite must decide now whether to hire more employees, do nothing, or develop subcontracts with other home improvement contractors. Build-Rite has developed the following payoff table: The best decision according to laplace criterion is alternative to what? and the weighted payoff for this decision is what?Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be unpredictable, so Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand for home improvements next year may be either low or high. But Build-Rite must decide now whether to hire more employees, do nothing, or develop subcontracts with other home improvement contractors. Build-Rite has developed the following payoff table:SBC Packers Co. is a logistics company owned by Engr. Sheera Bee Cabanlit. Anticipating the growing demand for delivery services, she developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small-time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.4. * What is the best decision alternative under Maximax criterion? (Provide complete decision table solution) What is the best of the best payoff value? What is the best of the worst decision alternative? Which decision alternative has a minimum payoff value from the maximum regrets? Which realism approach decision alternative has maximum payoff?
- SBC Packers Co. is a logistics company owned by Engr. Sheera Bee Cabanlit. Anticipating the growing demand for delivery services, she developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small-time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.4. * Which decision alternative has a minimum payoff value from the maximum regrets? Which realism approach decision alternative has maximum payoff?Problem 13-11 (Algorithmic) Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars. State of Nature Decision Alternative Strong Demand S1 Weak Demand S2 Small complex, d1 7 5 Medium complex, d2 14 6 Large complex, d3 20 -8 Suppose PDC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective probability assessment of 0.8 that demand will be strong (S1) and a corresponding probability of 0.2 that demand will be weak (S2). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $17.5 million and as long as the payoff…Problem 13-11 (Algorithmic) Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars. State of Nature Decision Alternative Strong Demand S1 Weak Demand S2 Small complex, d1 8 6 Medium complex, d2 14 5 Large complex, d3 19 -8 Suppose PDC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective probability assessment of 0.8 that demand will be strong (S1) and a corresponding probability of 0.2 that demand will be weak (S2). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $17.25 million and as long as the payoff…
- A hotel is runned by a manager and the owners propsoed a new proposal to increase their sales and if the manager does increases the sales they will pay him addiotional 10k but if they stick to their current situation what are the pros and cons, List 4 pros and 4 cons for status quo.DiHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small-time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. *What is the best decision alternative under Maximax criterion? (Provide complete decision table solution)DiHL Co. is a Danao-based logistics company owned by Engr. Donald H. Lalican. Anticipating the growing demand for delivery services, he developed a strategic plan for the year 2022. The options are to hire additional delivery crews in their Mandaue facility, construct a new facility in Talisay City, or subcontract Ohlala Move, a small-time company. A study conducted by the marketing department forecasted the following payoff values, which are summarized in the table below. The values are expressed as gains and alpha = 0.6. *a.) Which decision alternative has a minimum payoff value from the maximum regrets?b.) Which realism approach decision alternative has maximum payoff? c.) Which equally likely decision alternative has the best payoff value?
