Decision Making under Uncertainty

A Situation of uncertainty is on where neither the outcomes are known with certainty nor the probability of the outcomes are known, Here the decision maker cannot use EMV ( Expected Maturity Value ) or EOL ( Expected Opportunity Loss) Criterion because probability data is not available. The following Criterion have recommended and the use of any Criterion would depend upon the decision makers attitude and his Pshucological State of Mind. Maximin Criterion Maximax Criterion Laplace Critertion Minimax Regret Criterion Hurwicz Criterion

Q.A consumer product company is considering intro of two herbal paste.Toothpast a high value exotic variety ( X1) and an economy variety (X2).This are in addition to its Regular Variety (X3) in a new package.The marketing department of the company estimates the pay off at high value (S1),Moderate value (S2) & Low level (S3) as given below.