Consider two possible states of nature s₁ and 52 and three possible actions a 1,92 and a 3. a. Interpret the "ordered pair" (ai, sj) for i = {1,2,3} and j = {1,2} Suppose P(ai, sj) denotes the payoff arising from (ai, sj). Let P(a₁,81) = 130,000, P(a2, s1) 140,000, P(a3, S1) = 80,000 and P(a1, $2) = 400,000, P(a2, s2) = 260,000, P(a3,S2) 90,000 = b. Represent this in a table c. Find the maximin solution d. Find the minimax solution
Consider two possible states of nature s₁ and 52 and three possible actions a 1,92 and a 3. a. Interpret the "ordered pair" (ai, sj) for i = {1,2,3} and j = {1,2} Suppose P(ai, sj) denotes the payoff arising from (ai, sj). Let P(a₁,81) = 130,000, P(a2, s1) 140,000, P(a3, S1) = 80,000 and P(a1, $2) = 400,000, P(a2, s2) = 260,000, P(a3,S2) 90,000 = b. Represent this in a table c. Find the maximin solution d. Find the minimax solution
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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![Question 4.
Consider two possible states of nature s₁ and 52 and three possible actions a 1,92 and a 3.
a. Interpret the "ordered pair" (ai, sj) for i = {1,2,3} and j = {1,2}
Suppose P(ai, sj) denotes the payoff arising from (ai,sj). Let P(a₁, S1)
P(a2, s1) 140,000, P(a3, s1) = 80,000 and P(a1, S2) = 400,000, P(a2, $2) = 260,000,
P(a3,S2) 90,000
=
=
b. Represent this in a table
c. Find the maximin solution
- 130,000,
=
d. Find the minimax solution
e. If you knew the probabilities of s₁ and 52 occuring how would your decision making strategy
change ?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc418f0cd-165a-4ea5-9a24-6d9fb76e817b%2Fb44eec6a-fdeb-439a-a0d4-958809f61953%2Fvmpcc4_processed.png&w=3840&q=75)
Transcribed Image Text:Question 4.
Consider two possible states of nature s₁ and 52 and three possible actions a 1,92 and a 3.
a. Interpret the "ordered pair" (ai, sj) for i = {1,2,3} and j = {1,2}
Suppose P(ai, sj) denotes the payoff arising from (ai,sj). Let P(a₁, S1)
P(a2, s1) 140,000, P(a3, s1) = 80,000 and P(a1, S2) = 400,000, P(a2, $2) = 260,000,
P(a3,S2) 90,000
=
=
b. Represent this in a table
c. Find the maximin solution
- 130,000,
=
d. Find the minimax solution
e. If you knew the probabilities of s₁ and 52 occuring how would your decision making strategy
change ?
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