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  • 351 HW2 Question

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    yaren
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    This document contains a decision/payoff matrix for 8 decisions across 6 events. It then analyzes the matrix using various decision making criteria: 1) Maximin - Chooses the decision with the highest minimum payoff. Here, Decision 3 has the highest minimum of $10,000. 2) Maximax - Chooses the decision with the highest maximum payoff. Here, Decision 3 has the highest maximum of $95,000. 3) Laplace - Calculates the average payoff for each decision. Decision 5 has the highest average of $61,000. 4) Regret - Calculates the opportunity loss for each decision's payoffs. Not fully analyzed in the document.

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    This document contains a decision/payoff matrix for 8 decisions across 6 events. It then analyzes the matrix using various decision making criteria: 1) Maximin - Chooses the decision with the highest minimum payoff. Here, Decision 3 has the highest minimum of $10,000. 2) Maximax - Chooses the decision with the highest maximum payoff. Here, Decision 3 has the highest maximum of $95,000. 3) Laplace - Calculates the average payoff for each decision. Decision 5 has the highest average of $61,000. 4) Regret - Calculates the opportunity loss for each decision's payoffs. Not fully analyzed in the document.

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    9 views7 pages

    351 HW2 Question

    Uploaded by

    yaren
    This document contains a decision/payoff matrix for 8 decisions across 6 events. It then analyzes the matrix using various decision making criteria: 1) Maximin - Chooses the decision with the highest minimum payoff. Here, Decision 3 has the highest minimum of $10,000. 2) Maximax - Chooses the decision with the highest maximum payoff. Here, Decision 3 has the highest maximum of $95,000. 3) Laplace - Calculates the average payoff for each decision. Decision 5 has the highest average of $61,000. 4) Regret - Calculates the opportunity loss for each decision's payoffs. Not fully analyzed in the document.

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    of 7

    Decision / Payoff Matrix Event 1 Event 2 Event 3 Event 4 Event 5 Event 6

    Decision 1 47000 32000 88000 54000 70000 61000


    Decision 2 33000 40000 68000 82000 36000 73000
    Decision 3 10000 53000 95000 92000 11000 60000
    Decision 4 6000 58000 64000 74000 35000 24000
    Decision 5 86000 70000 90000 87000 25000 8000
    Decision 6 80000 25000 91000 1000 46000 8000
    Decision 7 83000 5000 46000 20000 52000 26000
    Decision 8 81000 45000 29000 30000 74000 47000

    Maximin

    Decision / Payoff Matrix Event 1 Event 2 Event 3 Event 4 Event 5 Event 6 minimum
    Decision 1 47000 32000 88000 54000 70000 61000 32000
    Decision 2 33000 40000 68000 82000 36000 73000 33000
    Decision 3 10000 53000 95000 92000 11000 60000 10000
    Decision 4 6000 58000 64000 74000 35000 24000 6000
    Decision 5 86000 70000 90000 87000 25000 8000 8000
    Decision 6 80000 25000 91000 1000 46000 8000 1000
    Decision 7 83000 5000 46000 20000 52000 26000 5000
    Decision 8 81000 45000 29000 30000 74000 47000 29000
    maximum 33000

    Maximax

    Decision / Payoff Matrix Event 1 Event 2 Event 3 Event 4 Event 5 Event 6 maximum
    Decision 1 47000 32000 88000 54000 70000 61000 88000
    Decision 2 33000 40000 68000 82000 36000 73000 82000
    Decision 3 10000 53000 95000 92000 11000 60000 95000
    Decision 4 6000 58000 64000 74000 35000 24000 74000
    Decision 5 86000 70000 90000 87000 25000 8000 90000
    Decision 6 80000 25000 91000 1000 46000 8000 91000
    Decision 7 83000 5000 46000 20000 52000 26000 83000
    Decision 8 81000 45000 29000 30000 74000 47000 81000
    maximum 95000

    Laplace

    Decision / Payoff Matrix Event 1 Event 2 Event 3 Event 4 Event 5 Event 6 average
    Decision 1 47000 32000 88000 54000 70000 61000 58666.66667
    Decision 2 33000 40000 68000 82000 36000 73000 55333.33333
    Decision 3 10000 53000 95000 92000 11000 60000 53500
    Decision 4 6000 58000 64000 74000 35000 24000 43500
    Decision 5 86000 70000 90000 87000 25000 8000 61000
    Decision 6 80000 25000 91000 1000 46000 8000 41833.33333
    Decision 7 83000 5000 46000 20000 52000 26000 38666.66667
    Decision 8 81000 45000 29000 30000 74000 47000 51000
    maximum 61000

    Regret

    Decision / Payoff Matrix Event 1 Event 2 Event 3 Event 4 Event 5 Event 6


    Decision 1 47000 32000 88000 54000 70000 61000
    Decision 2 33000 40000 68000 82000 36000 73000
    Decision 3 10000 53000 95000 92000 11000 60000
    Decision 4 6000 58000 64000 74000 35000 24000
    Decision 5 86000 70000 90000 87000 25000 8000
    Decision 6 80000 25000 91000 1000 46000 8000
    Decision 7 83000 5000 46000 20000 52000 26000
    maximum 86000 70000 95000 92000 70000 73000

    Decision / Payoff Matrix Event 1 Event 2 Event 3 Event 4 Event 5 Event 6


    Decision 1
    Decision 2
    Decision 3
    Decision 4
    Decision 5
    Decision 6
    Decision 7
    Best Alternative Best Payoff
    Maximin Approach
    Maximax Approach
    Laplace Approach
    Minmax Regret Approach
    Alternative Land Routes Land Routes Sea Routes Method
    No Treaty Treaty Only
    Arrows $840,000 $440,000 $190,000 Minmax
    Barrels $370,000 $220,000 $670,000 Maximax
    Wagons $25,000 $1,150,000 ($25,000) Laplace
    MinMaxRegret
    Best Best Pay
    Alternative Off Value

    nMaxRegret
    Alternative Land Routes Land Routes Sea Routes
    No Treaty Treaty Only
    190000 Arrows $840,000 $440,000 $190,000 190000 Arrows
    220000 Barrels $370,000 $220,000 $670,000 220000 Barrels
    -25000 Wagons $25,000 $1,150,000 ($25,000) -25000 Wagons
    220000
    Method Best Best Pay
    Alternative Off Value
    Minmax
    Maximax Arrows 190000
    Laplace
    MinMaxRegret

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