Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Chapter 9.5, Problem 13P
Summary Introduction
To explain: A memo about the strategy of Company A.
Introduction: Simulation model is the digital prototype of the physical model that helps to
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A payoff table is given as
s1
s2
s3
d1
250
450
500
d2
300
-250
900
d3
400
500
800
In each part of your answer, show the work you relied upon to reach your answer.
What decision should be made using expected value, in which the probabilities are s1=.3, s2=.2, s3=.5?
What decision should be made by the conservative decision-maker?
What choice should be made using the Hurwicz method, in which the coefficient of optimism (or realism) is .6? (hint: ignore the middle state of nature in performing the calculation).
Use the table below to answer the questions that follow and caculate the Expected Monetary Value(EMV) of the different outcomesDECISION TABLE WITH CONDITIONAL VALUESSTATE OF NATUREFAVORABLE OUTCOME UNFAVORABLE OUTCOMEALTERNATIVES ($) ($)Start a big Company 2,000,000 -500,000Start a small company 800,000 -200,000Build Nothing 0 0Probabilities 0.3 0.7Calculate the following The EMV
Maximin criterion
Maximax criterion
Minimax criterion
Consider a public project with the cost of 500. There are three individuals with the following benefits for the public good: v1=400, v2=200 and v3=0.
Which of the following statement is false about the VCG (Vickrey-Clarke-Groves) mechanism?
None of the options
The budget deficit is 200
VCG mechanism is strategy-proof
The tax for individual 3 is equal to 0
The tax for individual 1 is equal to 300
Chapter 9 Solutions
Practical Management Science
Ch. 9.2 - Prob. 1PCh. 9.2 - Prob. 2PCh. 9.2 - Prob. 3PCh. 9.3 - Prob. 4PCh. 9.3 - Prob. 5PCh. 9.3 - Prob. 6PCh. 9.3 - Prob. 7PCh. 9.4 - Explain in some detail how the PrecisionTree...Ch. 9.4 - Prob. 9PCh. 9.4 - Prob. 10P
Ch. 9.5 - Prob. 11PCh. 9.5 - Prob. 12PCh. 9.5 - Prob. 13PCh. 9.5 - Prob. 17PCh. 9.5 - Prob. 18PCh. 9.5 - Prob. 19PCh. 9.5 - Prob. 21PCh. 9.5 - The model in Example 9.3 has only two market...Ch. 9.6 - Prob. 26PCh. 9.6 - Prob. 27PCh. 9.6 - Prob. 28PCh. 9 - Prob. 30PCh. 9 - Prob. 31PCh. 9 - Prob. 32PCh. 9 - Prob. 34PCh. 9 - Prob. 36PCh. 9 - Prob. 37PCh. 9 - Prob. 38PCh. 9 - Prob. 39PCh. 9 - Prob. 46PCh. 9 - Prob. 48PCh. 9 - Prob. 53PCh. 9 - Prob. 67PCh. 9 - Prob. 68PCh. 9 - Prob. 69PCh. 9 - Prob. 70PCh. 9 - Prob. 71PCh. 9 - Prob. 72PCh. 9 - Prob. 73PCh. 9 - Prob. 74PCh. 9 - Prob. 75PCh. 9 - Prob. 76PCh. 9 - Prob. 77P
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