JayZee Electronics wanted to expand its operations by considering of putting up another warehouse to store their electronic supplies from different suppliers. The table below shows the payoff for all alternatives available for JayZee Electronics in all 3 states of nature. The probabilities for every state of nature is also provided. Poor Market ($) -10,000 Size of the Warehouse Good Market ($) Fair Market ($) 40,000 80,000 Small 18,000 Medium 90,000 -20,000 -40,000 Large Very Large 100,000 350,000 175,000 25,000 -160,000 Probabilities 0.35 0.45 0.20 Using Decision Making under Uncertainty (Use Sheet 1 and rename it to Lastname_Uncertainty) (a) Develop a decision table for this decision. (b) What is the maximax decision? (c) What is the maximin decision? (d) What is the equally likely decision?

JayZee Electronics wanted to expand its operations by considering of putting up another warehouse to store their electronic supplies from different suppliers. The table below shows the payoff for all alternatives available for JayZee Electronics in all 3 states of nature. The probabilities for every state of nature is also provided. Poor Market ($) -10,000 Size of the Warehouse Good Market ($) Fair Market ($) 40,000 80,000 Small 18,000 Medium 90,000 -20,000 -40,000 Large Very Large 100,000 350,000 175,000 25,000 -160,000 Probabilities 0.35 0.45 0.20 Using Decision Making under Uncertainty (Use Sheet 1 and rename it to Lastname_Uncertainty) (a) Develop a decision table for this decision. (b) What is the maximax decision? (c) What is the maximin decision? (d) What is the equally likely decision?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 30P

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