3. A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment: Gasoline Availability Investment Shortage Stable Supply Surplus Motel S-8,000 2,000 S15.000 $20,000 Restaurant 8,000 6,000 Theater 6,000 6,000 5,000 Determine the best investment, using the following decision criteria. a. Maximax b. Maximin c. Minimax regret d. Hurwicz(a = .4) e. Equal likelihood
3. A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment: Gasoline Availability Investment Shortage Stable Supply Surplus Motel S-8,000 2,000 S15.000 $20,000 Restaurant 8,000 6,000 Theater 6,000 6,000 5,000 Determine the best investment, using the following decision criteria. a. Maximax b. Maximin c. Minimax regret d. Hurwicz(a = .4) e. Equal likelihood
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 28EQ
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![3. A local real estate investor in Orlando is considering three alternative
investments: a motel, a restaurant, or a theater. Profits from the motel or
restaurant will be affected by the availability of gasoline and the number of tourists,
profits from the theater will be relatively stable under any conditions. The following
payoff table shows the profit or loss that could result from each investment:
Gasoline Availability
Investment
Shortage
Stable Supply
Surplus
Motel
Restaurant
Theater
S 8,000
2,000
6,000
S15,000
8,000
6,000
$20,000
6,000
5,000
Determine the best investment, using the following decision criteria.
a. Maximax b. Maximin c. Minimax regret d. Hurwicz(a = .4) e. Equal likelihood
%3D
4.
A television network is attempting to decide during the summer which of
the following three football games to televise on the Saturday following
Thanksgiving
Day: Alabama yersus Auburn, Georgia versUs Georgia Tech
or Army versus](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ce9c530-9b03-4668-a22b-eb537683a23e%2Fd024a68b-c7ef-4156-86f5-9263535865e5%2Fl30kct_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. A local real estate investor in Orlando is considering three alternative
investments: a motel, a restaurant, or a theater. Profits from the motel or
restaurant will be affected by the availability of gasoline and the number of tourists,
profits from the theater will be relatively stable under any conditions. The following
payoff table shows the profit or loss that could result from each investment:
Gasoline Availability
Investment
Shortage
Stable Supply
Surplus
Motel
Restaurant
Theater
S 8,000
2,000
6,000
S15,000
8,000
6,000
$20,000
6,000
5,000
Determine the best investment, using the following decision criteria.
a. Maximax b. Maximin c. Minimax regret d. Hurwicz(a = .4) e. Equal likelihood
%3D
4.
A television network is attempting to decide during the summer which of
the following three football games to televise on the Saturday following
Thanksgiving
Day: Alabama yersus Auburn, Georgia versUs Georgia Tech
or Army versus
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