Using the Maximax criterion, what is the best decision and the expected payoff? Best decision Payoff
Q: A manager has to decide whether to prepare a bid or not. It costs P5,000 to prepare the bid. If the…
A: THE ANSWER IS AS BELOW:
Q: Happy Company is going to introduce one of the three new products (alternative) to the market: A, B…
A: The given data is
Q: Bakery Products is considering the introduction of a new line of products. In order to produce the…
A: Given data: Decision alternatives States of nature with profits survey results Conditional…
Q: Consider the following table which presents information on the returns in million pounds from a…
A: Note: - Since we can answer only up to three subparts we will answer subparts a(1, 2, and 3) here.…
Q: 1. WHat is the best decision alternative under maximax criterion? (Provide complete decision table…
A: Since you have submitted a question with multiple subparts, as per guidelines we have answered the…
Q: For a payoff matrix with m alternative actions, n states of nature, and no probabilities, which of…
A: This question is related to the topic-Decision Making and this topic falls under the operations…
Q: Set up this project as a decision tree to find whether the manufacturer should approve this project,…
A: THE ANSWER IS AS BELOW:
Q: explaining how marginal costing, standard costing and budgeting helps the management in decision…
A: The Management is continually impacting the association's exercises and the decision-making cycle is…
Q: Which of the following statements is true concerning decision tree conventions? a.Time proceeds…
A: A decision tree is a tool that represents the attributes of an event, its consequences, costs, and…
Q: A decision maker has prepared the following payoff table. States of Nature Alternative High Low Buy…
A: Decision Table Alternatives High Low Buy 85 5 Rent 70 50 Lease 45 55…
Q: Bakery Products is considering the introduction of a new line of products. In order to produce the…
A: In decision theory, the expected value of sample information is the expected expansion in utility…
Q: For the decision tree in Figure 12.13, assume Chance Events E and F are independent. a Draw the…
A: Given tree,
Q: With respect to consumer decision making, the ________ set is the set of strong contenders from…
A: The concept covered here is of Marketing management and consumer decision making.
Q: A decision maker has prepared the following payoff table. States of Nature Alternative High 75 Low…
A: Decision Table Alternatives High Low Buy 75 -10 Rent 70 30 Lease 50 35
Q: Maximin criterion, what is the best decision and the expected payoff?
A: Maximin criteria indicating a model of selecting the decision based on choosing least bad outcome…
Q: A decision maker has prepared the following payoff table. States of Nature Alternative High Low…
A: Given Data: Decision-maker has 3 alternatives: 1. Buy 2. Rent 3. Lease And Has two outcomes, one…
Q: Happy Company is going to introduce one of the three new products (alternative) to the market: A, B…
A: Given Information:
Q: Given the following profit matrix. Draw the decision tree and decide which alternative you choose…
A: Given data is
Q: Consider the following payoff table for three product decisions (A, B, and C) and three future…
A: Given data is
Q: 1. Rajah Company is going to introduce one of the three new products: A, B, and C or do nothing. As…
A: Find the Given details below: Given details: Product Market Condition, Payoff (RM) Favourable…
Q: The written objective “to introduce 12 new computers to the market” is missing which recommended…
A: Objectives show the goals of the company. Objectives show the desires and its aim for the present…
Q: r men’s furnishings is planning a 16% reduction in sales for the department. If last year’s sales…
A: Hi Please find the step by step answer in next page
Q: A company must decide now which of three products to make next year to plan and order proper…
A: (a) Minimum: This is defined as the decision-making strategy under uncertainty. It is termed as a…
Q: How can the tourism industry reduce & eliminate probable risks in Covid 19 situation?
A: The coronavirus (COVID-19) pandemic has caused an unparalleled disaster due to its swift and massive…
Q: Explain what is incremental approach ? Describe an ideal situation and least ideal situation for its…
A: The incremental approach comprises methods to integrate small improvements rather than significant…
Q: A decision maker's worst option has an expected value of $1,000, and her best option has an expected…
A: A decision producer's most noticeably terrible option has a normal value of $1,000. This implies…
Q: A decision maker has prepared the following payoff table. States of Nature Alternative High Low Buy…
A: This question is related to the topic-decision making and this topic falls under the operations…
Q: A decision maker has prepared the following payoff table. States of Nature Alternative Low High 80…
A: Decision Table Alternatives High Low Buy 80 -5 Rent 85 45 Lease 60 50
Q: Come up with a decision using each of the different criteria under conditions of uncertainty using…
A: Given data is
Q: You are entrusted with deciding whether to make or buy software. The make decision has a setup cost…
A: Make decision: Set up cost = $15000 Variable cost (monthly maintenance) = $1200 Purchase decision:…
Q: Decision Table with Conditional Values for Happy Company: Product Market Condition and Payoff (RM)…
A: When the decision needs to be made under uncertainty, and the probability of each state of nature is…
Q: A decision maker has prepared the following payoff table. States of Nature Alternative Buy High Low…
A: Decision Table Alternatives High Low Buy 85 -10 Rent 70 45 Lease 45 40
Q: Explain two approaches a seller can use to estimate variable consideration, and when each approach…
A: Below is the solution:-
Q: Identify the decision taken under the following approaches: (1) Equal probability (2) Regret (3)…
A: Here, in the question, there are four alternatives or options, these options are market locally, use…
Q: Determine the best investment, using the following decision criteria. a. Maximax b. Maximin c. Equal…
A: THE ANSWER IS AS BELOW:
Q: These are some of the purposes that a business plan has. Describe how each goal contributes to the…
A: Business Plan- A written record that describes in plenty of elements how a commercial enterprise…
Q: Come up with a decision using MINIMAX REGRET CRITERION under conditions of uncertainty using the…
A: Given data is
Q: Supposed that a decision-maker faced with four decision alternatives and four states of nature…
A: A scenario with a range of potential outcomes and a range of potential solutions can be represented…
Q: Provide a circumstance under which the expected monetary value is appropriate for decision making.
A: To be determined: Provide a circumstance under which the expected monetary value is appropriate for…
Q: Come up with a decision using each of the different criteria under conditions of uncertainty using…
A: Given-
Q: A decision maker has prepared the following payoff table. States of Nature Alternative High Low Buy…
A: Decision Table Alternatives High Low Buy 80 10 Rent 60 45 Lease 50 40
Q: A decision maker has prepared the following payoff table. States of Nature Alternative High Low Buy…
A: Decision Table Alternatives High Low Buy 100 0 Rent 60 35 Lease 60 45
Q: A situation in which a decision maker must choose bety possible outcome when the probability of each…
A: When there are the chances of more than one outcome as a result then the decision-maker chooses the…
Q: Sam is fourteen and has taken piano lessons since he was five. He feels that he misses out on many…
A: 1. Problem Identification:.The problem is that sam want to quit lessons anymore but his mother is…
Q: The target market generally determines the menu pricing strategies. mention the factors that a…
A: The process of estimating the price at which businesses want to offer different foods at their…
Q: 7) What is a decision tree and describe how it is used in relation to expected monetary value…
A: A decision tree is a tool that represents the attributes of an event, its consequences, costs, and…
Q: What is Extreme point? What is Alternative optimal solutions? What is Infeasibility?
A: There is one concept of linear programming problem in operations management where we have certain…
Q: The ARA Railroad owns a piece of land along with one of its right-of-ways. The land originally cost…
A: The cost of the next best alternative available to ARA Railroad; that is, selling the land to an…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Consider the following payoff table for three product decisions (A, B, and C) and three future market conditions (payoffs = P millions) Assume that is now possible for the company to estimate a probability of 0.40 that market condition1 will exist, 0.40 for market condition 2 and a probability of 0.20 that market condition 3 will exist in the future. Determine the best decision using expected value. Determine the expected value of perfect information (EVPI)?Determine the best decision using expected opportunity loss.Dwayne Whitten, president of Whitten Industries, is considering whether to build a manufacturing plant in north Texas. His decision is summarized in the following table: Alternatives Favorable Market Unfavorable Market Build large plant $400,000 −$300,000 Build small plant $120,000 −$15,000 Don't Build $0 $0 Market Probability 0.40 0.60 a) The correct decision tree for Dwayne is shown in Figure ____ (all payoffs are in thousands). b) To maximize the return, Dwayne's decision should be to ______ . c) For Dwayne, the expected value of perfect information (EVPI) = $___________ (enter your answer as a whole numA payoff table is given as: S1 S2 S3 D1 250 750 500 D2 300 -250 1200 D3 500 500 600 (a) What choice should be made by the optimistic decision maker? (b) What choice should be made by the conservative decision maker? (c) What decision should be made under minimal regret? (d) If the probabilities of d1, d2, and d3 are .2, .5, and .3, respectively, then what choice should be made under expected value?
- The following payoff table provides profits based on various possible decision alternatives adn various levels of demand at Robert Klassan's print shop: decision low high alt 1 $10,000 $36,000 alt 2 $6,000 $38,000 alt 3 -$2500 $52,000 The probability of low demand is 0.40 whereas the probability of high demand is 0.60. a) The alternative that provides Robert the greatest expected monetary value is _________ The EMV for this decision is $_______ b) The expected value with perfect information (EVwPI)= $______ c) The expected value of perfect information (EVPI) for Robert= $________Robert Ragsdale is trying to decide if he should purchase repair and replacement insurance on a new laptop computer that he is planning to purchase. The policy costs $400.00 at the time of purchase, and over the next three years will replace the laptop if it is stolen or repair it if it is broken. The following table contains the total costs of this decision. Which alternative is best, according to each of the following decision criteria? Maximin Maximax Laplace Minimax regretSupposed that a decision-maker faced with four decision alternatives and four states of nature develops the following profit payoff table.1. If the decision-maker knows nothing about the probabilities of the four states of nature, what is the recommended decision using the MAXIMAX criterion?2. What decision alternative will he choose if using the MAXIMIN criterion?3. What about MINIMAX REGRET CRITERION?4. What decision would he make if using the criterion of realism at alpha 0.6 is used?
- 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.Exhibit 20-2Below is a payoff table involving three states of nature and two decision alternatives. Decision States of Nature Alternative s1 s2 s3 A 80 45 –20 B 40 50 15 P(s1) = .1, P(s2) = .6, and P(s3) = .3.Refer to Exhibit 20-2. The expected value of the best alternative equals _____. a. 12 b. 38.5 c. 29 d. 105A small building contractor has recently experienced two successive years in which work opportunities exceeded the firm’s capacity. The contractor must now make a decision on capacity for next year. Estimated profits under each of the two possible states of nature are as shown in the tablebelow. Which alternative should be selected if the decision criterion is:a. Maximax?b. Maximin?c. Laplace?d. Minimax regret?NEXT YEAR’SDEMANDAlternative Low HighDo nothing $50* $60Expand 20 80Subcontract 40 70
- DECISION THEORY. A man has to decide wheter to resign or not from his present position and apply for a job offering him 2x his present salary, that is if he passes the qualifying test. At present, he receives $3000 monthly compensation. The offer from another company has a condition that he will not be allowed to take the qualifying test, he will immediately be taken in and have a monthly pay of $6000. If he fails, he will remain jobless, he feels that his chance of passing the test is 35%. Suppose he decides to base his decision on expected value, should he resign from his post or not?A local real estate investor in Montego Bay is considering three alternative investments: a motel,a restaurant, or a theatre. Profits from the motel or restaurant will be affected by the availabilityof gasoline and the number of tourists; profits from the theatre will be relatively stable under anyconditions. The following payoff table shows the profit or loss that could result from eachinvestment: Real Estate Investor Payoff Table Payoffs are Profits States of Nature (Gasoline Availability)Decision Alternatives Shortage Stable Supply SurplusMotel $–8,000 $15,000 $20,000Restaurant $2,000 $8,000 $6,000Theater $6,000 $6,000 $5,000 A. Which option should the real estate investor choose if he uses the LaPlace criterion? B. Using a…2. A real estate developer must decide on a plan for developing a certain piece of property. After careful consideration, the developer has two acceptable alternatives: residential proposal or commercial proposal. The main factor or state of nature that will influence the profitability of the development is whether or not a shopping center is built close by and the size of the shopping center. There is a 20% chance of no center being built, a 50% chance of a medium shopping center built, and a 30% chance of a large shopping center. If the developer selects the residential proposal and no center is built, he has a further set of options: do nothing $400,000 payoff; build a small shopping center himself $700,000 payoff; or put in a park resulting in $800,000 payoff. Should a medium shopping center be built nearby, his payoff for residential would be $1,600,000 and large shopping center results in a $1,200,000 payoff. If the developer selects the commercial proposal and no center is…