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  • Hurwickz Criterion

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    Surajit Goswami
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    The document describes the Hurwicz criterion, which provides a mechanism for decision makers to balance optimism and pessimism when evaluating alternatives. It does this by weighting the maximum and minimum payoffs of each alternative using a degree of optimism and pessimism. The example shows how the Hurwicz criterion calculates a score for each alternative by taking the weighted average of the maximum and minimum payoffs using an optimism weighting of 0.5.

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    The document describes the Hurwicz criterion, which provides a mechanism for decision makers to balance optimism and pessimism when evaluating alternatives. It does this by weighting the maximum and minimum payoffs of each alternative using a degree of optimism and pessimism. The example shows how the Hurwicz criterion calculates a score for each alternative by taking the weighted average of the maximum and minimum payoffs using an optimism weighting of 0.5.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    16 views4 pages

    Hurwickz Criterion

    Uploaded by

    Surajit Goswami
    The document describes the Hurwicz criterion, which provides a mechanism for decision makers to balance optimism and pessimism when evaluating alternatives. It does this by weighting the maximum and minimum payoffs of each alternative using a degree of optimism and pessimism. The example shows how the Hurwicz criterion calculates a score for each alternative by taking the weighted average of the maximum and minimum payoffs using an optimism weighting of 0.5.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 4

    HURWICKZ CRITERION

    Its stipulates decision makers view. It provides mechanism balance between pessimism & optimism. It weighting them with certain degree of optimism & pessimism.

    Example
    Alternatives Maximum payoffs (i) Minimum payoffs (ii)

    A1 A2 A3 A4

    32 24 21 27

    7 9 10 17

    Alternatives

    Maximum payoffs (i)

    Minimum payoffs (ii)

    h= * i+(1-) * ii (=0.5)

    A1
    A2 A3

    32
    24 21

    7
    9 10

    19.5
    16.5 15.5

    A4

    27

    17

    22.0

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