Given is a decision payoff table. Answer all questions below. Future Demand Alternatives Low Moderate High...

Given is a decision payoff table. Answer all questions below. Future Demand Alternatives Low Moderate High Small Facility 52 42 43 Medium Facility 50 49 49 Large Facility -15 38 51 a) The best payoff for small facility is = b) The worst payoff for medium facility is = c) The average payoff for large facility is = (in 2 decimal places) d) The worst regrets for small facility is = e) The worst regrests for medium facility is = f) The best decision by using OPTIMISTIC is to select the facility g) The best decision by using CONSERVATIVE is to select the facility h) The best decision by using LAPLACE/EQUALITY LIKELY is to select the facility i) The best decision by using MINIMAX REGRET is to select the facility

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ekkarill92 answered 1 year ago

payoff table ------------------------------------------- Demand Decision ---------------------------- Alternatives Low Medium High ------------------------------------------- Small, d1 400 400 400...

payoff table ------------------------------------------- Demand Decision ---------------------------- Alternatives Low Medium High ------------------------------------------- Small, d1 400 400 400 Medium, d2 100 600 600 Large, d3 -300 300 900 -------------------------------------------- a) If nothing is known about the demand probabilities, what are the recommended decision using the Maximax(optimistic), Maximin (pessi- mistic), and Minimax regret approaches? b) If P(low) = 0.20, P(medium) = 0.35, and P(high) = 0.45, What is the recommended decision using the expected value approach? c) What is the expected value of...

The following payoff table shows profit for a decision analysis problem with two decision alternatives and...

The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. Decision Alternative States of Nature s1 s2 s3 d1 240 90 15 d2 90 90 65 Suppose that the decision maker obtained the probabilities P(s1) = 0.65, P(s2) = 0.15, and P(s3) = 0.20. Use the expected value approach to determine the optimal decision. EV(d1) = EV(d2) = The optimal decision is ? d₁ d₂

The payoff table below provides the profits (in thousands of dollars) for each of four alternatives...

The payoff table below provides the profits (in thousands of dollars) for each of four alternatives in each of three supplies. Supplies Alternative S1 S2 S3 A1 112 67 -26 A2 82 85 101 A3 85 72 80 A4 -50 90 110 Suppose that the probabilities for the supplies above are P(S1) = 0.6, P(S2) = 0.2, and P(S3) = 0.1. Which alternative should be selected under Bayes’ Rule? What is the expected value of perfect information for this decision?

You are given the following payoff table with profits (in $). Decision Alternative States of Nature...

You are given the following payoff table with profits (in $). Decision Alternative States of Nature s1 s2 d1 1000 3000 d2 4000 500 Assume the following probability information is given, where I1 and I2 are the outcomes of the sample information available: P(s1) = 0.45; P(I1 | s1) = 0.7; P(I2 | s1) = 0.3 P(s2) = 0.55; P(I1 | s2) = 0.6; P(I2 | s2) = 0.4 [2] Find the values of P(I1) and P(I2). [2] Determine the...

Consider the following payoff table in which D1 through D3 represent decision alternatives, S1 through S4...

Consider the following payoff table in which D1 through D3 represent decision alternatives, S1 through S4 represent states of nature, and the values in the cells represent return on investments in millions. S1 S2 S3 S4 D1 30 20 -50 100 D2 60 150 40 -80 D3 40 10 80 80 What are the decision alternatives, and what are the chance events for this problem? Construct a decision tree What is the preferred alternative when the decision maker is...

3.Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer...

3.Given is a Decision Tree Diagram. The Payoffs 1-14 are given in the table below. Answer questions a, b, and c. Payoff 1 2 3 4 5 6 7 8 9 10 11 12 13 14 $ 6 -3 5 5 8 5 5 -1 5 4 5 2 7 5 a) The value at node 4 is b) The value at node 8 is (in 1 decimal place) c) The best course of action or decision is to...

Please answer all questions, fill in table and show calculations. The table below shows the hypothetical...

Please answer all questions, fill in table and show calculations. The table below shows the hypothetical prices and quantities demanded of a software product. Assume that the fixed cost of setting up the production of software is $200 and the marginal cost is $5. Fill out the table by calculating the revenue, the marginal revenue, total cost, the marginal cost, and the profit. Give a general definition of price elasticity of demand. Explain the factors that make the demand of...

Refer to the table for Moola given below to answer the following questions Enter answers...

Refer to the table for Moola given below to answer the following questions Enter answers as whole numbers a. What is the equilibrium interest rate in Moola?... percent. b. What is the level of investment at the equilibrium interest rate? $...? c. Is there either a recessionary output gap (negative GDP gap) or an inflationary output gap (positive GDP gap) at the equilibrium interest rate and, if either, what is the amount? Recessionary output or Gap Inflationary output gap...

Given the following demand and cost functions, answer the questions below. ??(?) = 150 − 3?...

Given the following demand and cost functions, answer the questions below. ??(?) = 150 − 3? ?(?) = 5? a) What is the perfectly competitive long-run equilibrium price and quantity? b) Suppose the market is served by a monopolist, what is the long-run equilibrium price and quantity? c) Graph the demand, marginal cost, and marginal revenue curves. Indicate the equilibrium price and quantity pairs under perfect competition and monopoly. d) What are consumer, producer, and total surplus under perfect competition?...

Using the payoff matrix below, answer the following questions: What is the Nash equilibrium for this...

Using the payoff matrix below, answer the following questions: What is the Nash equilibrium for this game? Is this the optimal outcome for both players? Assume Greg and Oleg agree to set high prices. Will such an agreement be kept? Why or why not? If Greg announces that he will match Oleg's prices no matter what, what do you expect the outcome to be? Oleg's Fruit Company Low Price High Price Greg's Apples Low Price Greg= 300 Oleg = 300...

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