Answer to Question #229954 in Operations Research for Lidet

Question

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?