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Presentation by
Martha Dsouza. Aarti Asrani Urja Shah Pooja Bhalja Suchita Nevrekar Pallavi Karande
Introduction
Decision making is the essence of management, it is the process of making decision calls for identifying the alternatives,gathering all the relevent information about them and selecting the best alternative on the basis of some criterion.
2. Decision Rules: A. DECSION UNDER UNCERTAINTY: The decision situation where there is no way in which the decision maker can assess the probabilities of the various states of nature are called decision under uncertainty. Laplace Principle: The Laplace Principle is based on the simple philosophy that if we are uncertain about the various events then we may treat them as equally probable. Maximin or Minimax Principle: This principle is adopted by pessimistic decision makers who are conservative in their approach. It involves choosing the best profit from the set of worst profits.
Maximax or Minimin Principle: The Maximax Principle is optimists principle of choice. It suggests that for each strategy, the maximum profit should be considered and the strategy with which the highest of these values is associated should be chosen.
Hurwicz Principle: The Hurwicz Principle of decision making stipulates that a decision makers view may fall somewhere between the extreme pessimism of the maximum principle and the extreme optimism of the maximax principle.