Answer to Question #222594 in Operations Research for HANNA

Question

Problem 3: Kebede & co. is considering investing some money that they inherited.

The following payoff table gives the profits that would be realized during the next

year for each of three investment alternatives the co. is considering:

a) What decision should be done by Maximax?

b) What decision should be done by Maximin?

c) What decision should be done by Criterion of realism? Assume that

coefficient of realism, α, to be 0.80.

d) What decision should be done by Equally likely?

e) What decision should be done by Minimax regret?

f) What decision should be done by EMV?