Answer to Question #265736 in Management for Vee

Question

a)     Amicable Suppliers Ltd has conducted a market research on various alternatives that can help them increase revenue. The following information is provided:

           

 

Possible future demand with probabilities

Decision alternatives

Low (0.25)

Moderate(0.35)

High(0.4)

Sling bag

6

10

9

Clutch bag

2

12

11

Large bag

(4)

4

14

Determine the various pay-offs under the following techniques;

a.      Maximax (4mks),

b.     Maximin(4mks),

c.      Minimax Regret(4mks),

d.     Laplace(5mks),

e.      Hurwicz criteria(5 marks),

f.       Expected Opportunity Loss(4marks) and

g.     Expected Monetary Value(4marks)

alpha=0.65

Answer 1

The maximax criteria are substantially more straightforward to use than the anticipated valuation condition. You merely consider your best effort in each operation the most significant number in each column. The best (biggest) of these is then chosen in strategy theoretical or goal setting, a strategy in which a person picks the best of a set of worst-case scenarios or payoffs.

Leonard Vandal proposed the min-max criteria as a stance criterion. For a given environment state, this criteria minimizes the predicted loss associated with making a less-than-optimal option.

The Laplace Shift converts standard divergent models into algebraic solutions, which makes solving ODEs quicker. The Laplace Convert is an expanded Fourier Reverse since it can reshape functions that don't have Fourier Transforms.

EOL stands for anticipated chance loss, and it is a numerical computation used primarily in the corporate world to assist choose the best course of action. Determining the EOL is a systematic method of comparing various options and results using a quantitative model to find the most lucrative selection.