Moderate High VeryHigh Minimum Maximum Avg
Reassign Staff 50 60 85 50 85 65
New Staff 60 60 60 60 60 60
Redesign Collection 40 50 90 40 Equally
90likely 60
Minimin Minimax
Regret matrix Moderate high very high max minimax regret
reassign staff 10 10 25 25 New staff
New staff 20 10 0 20
redesign 0 0 30 30
Hurwicz COEFFICIENT
PAYOFF
reassign staff 78
New staff 60
redesign 80
CHOICE Newstaff
Payoff good average poor minimum maximum average
move to lar 90000 41000 -28000 -28000 90000 34333.33
expand sto 76000 30000 17000 17000 76000 41000
do nothing 40000 15000 4000 4000 40000 19666.67
maximax move to larger facility
maximin expand store
equally likeexpand store
regret matrgood average poor maximum
move to lar 0 0 45000 45000
expand sto 14000 11000 0 14000 Select
do nothing 50000 26000 13000 50000
minimax reexpand store
Hurwicz coefficient
payoff
move to lar 19200
expand sto 40600 Select
do nothing 18400
Selection Expand Store
Maximax Criteria
InvestmentStrong Average Weak Max PayoffChoice Investment
Stocks 0.12 0.06 -0.1 0.12 Select Stocks
Bonds 0.07 0.04 0.01 0.07 Bonds
Money mar 0.04 0.03 0.02 0.04 Money mar
Equally likely criterion
InvestmentStrong Average Weak Average paChoice Investment
Stocks 0.12 0.06 -0.1 0.026667 Stocks
Bonds 0.07 0.04 0.01 0.04 Select Bonds
Money mar 0.04 0.03 0.02 0.03 Money mar
Maximin Criteria
Strong Average Weak Max PayoffChoice
0.12 0.06 -0.1 0.12
0.07 0.04 0.01 0.07
0.04 0.03 0.02 0.04 Select
Hurwicz criterion
Strong Average Weak Coefficient1-α Realism paChoice
0.12 0.06 -0.1 0.4 0.6 -0.012
0.07 0.04 0.01 0.4 0.6 0.034 Select
0.04 0.03 0.02 0.4 0.6 0.028
payoff matrix growing stagnant average
large wing 225000 -125000 50000
small wing 90000 -65000 12500
no wing 0 0 0
equally likely large wing
payoff
large wing 120000
small wing 43500 hurwicz coefficient 0.7
no wing 0
choice large wing
Maximax Decision
Size Good econFair econo Poor econ Maximax Pa
Choice Size
Small 70000 28000 -14000 70000 Small
Medium 112000 42000 -28000 112000 Medium
Large 140000 42000 -56000 140000 Large
Very Large 420000 35000 -224000 420000 Select Very Large
Equally Likely Payoff Decision
Size Good econFair econo Poor econ Average PaChoice Size
Small 70000 28000 -14000 28000 Small
Medium 112000 42000 -28000 42000 Medium
Large 140000 42000 -56000 42000 Large
Very Large 420000 35000 -224000 77000 Select Very Large
Minimax Decision
Size Good econFair econo Poor econ Minimax PaChoice
Small 70000 28000 -14000 -14000 Select
Medium 112000 42000 -28000 -28000
Large 140000 42000 -56000 -56000
Very Large 420000 35000 -224000 -224000
Maximin Decision
Good econFair econo Poor econ Maximin PaChoice
70000 28000 -14000 70000 Select
112000 42000 -28000 112000
140000 42000 -56000 140000
420000 35000 -224000 420000
Coefficient of realism(Hurwicz criterion
Good econFair econo Poor econ α 1-α Payoff Choice
70000 28000 -14000 0.8 0.2 53200
112000 42000 -28000 0.8 0.2 84000
140000 42000 -56000 0.8 0.2 100800
420000 35000 -224000 0.8 0.2 291200 Select
Demand 50 100 150
Probability 0.4 0.5 0.1
Production 5
Late produc 7
selling cost 10
disposal co 1
Demand
Supply 50 100 150 expected profit
50 250 400 550 355
100 0 1000 1300 630
150 -250 250 1500 175
Demand
Supply 50 100 150 expected profit
50 250 400 550 355
100 -50 1000 1300 610
150 -350 200 1500 110
Probability 0.75 0.25
Payoff Matrix High Medium Low Did Not Enter
High 0.3 0.55 0.15 1
Medium 0.2 0.7 0.1 1
Low 0.15 0.25 0.6 1
Did Not Enter 0 0 0 0
Probability 0.75 0.25
Payoff Matrix High Medium Low Did Not Enter
High 0.225 0.4125 0.1125 0.25
Medium 0.15 0.525 0.075 0.25
Low 0.1125 0.1875 0.45 0.25
Did Not Enter 0 0 0 0
Payoff Matrix High Medium Low Did Not Enter expected payoff
High 400000 250000 25000 600000 345937.5
Medium 475000 325000 175000 500000 380000
Low 350000 250000 125000 400000 242500
Did Not Enter 0 0 0 0 0
