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START AT 19.7. Section 19.6 was already done so continue from there and begin at 19.7 NB.To be done in excel

START AT 19.7. Section 19.6 was already done so continue from there and begin at 19.7 NB.To be done in excel

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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START AT 19.7. Section 19.6 was already done so continue from there and begin at 19.7

NB.To be done in excel

19-6. Given the following decision table: States of Nature S₁ S₂ S3 Alternatives A₁ 170 45 -60 100 A₂ 30 190 175 -65 A3 145 -50 120 110 A4 -40 80 10 70 a. Use the maximax criterion to determine which decision alternative to select. b. Use the maximin criterion to determine which decision alternative to select. c. Use the minimax regret criterion to determine which decision alternative to select. 19-7. The probabilities assessed with the states of nature in the previous problem are P(S₁) = 0.1, P(S₂) = 0.2, P(S3) = 0.4, P(S₂) = 0.3 Using these probabilities, determine which alterna- tive to select using the expected-value criterion. S4
Transcribed Image Text:19-6. Given the following decision table: States of Nature S₁ S₂ S3 Alternatives A₁ 170 45 -60 100 A₂ 30 190 175 -65 A3 145 -50 120 110 A4 -40 80 10 70 a. Use the maximax criterion to determine which decision alternative to select. b. Use the maximin criterion to determine which decision alternative to select. c. Use the minimax regret criterion to determine which decision alternative to select. 19-7. The probabilities assessed with the states of nature in the previous problem are P(S₁) = 0.1, P(S₂) = 0.2, P(S3) = 0.4, P(S₂) = 0.3 Using these probabilities, determine which alterna- tive to select using the expected-value criterion. S4
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