45. Award: 10.00 points  

MC Qu. 9-45 Based on the following payoff...

Based on the following payoff table, answer the following:

 
Alternative High Medium Low
A 20 20 5
B 25 30 11
C 30 12 13
D 10 12 12
E 50 40 −28
Prior Probability 0.3 0.2 0.5
 
The maximax strategy is:

 A.

m
e r as
 B.

co
 C.

eH w
 D.

o.
 E.
rs e
ou urc
The maximax strategy chooses the alternative that has the highest maximum payoff. In this case, "E" has a
o

maximum payoff of 50, which is the highest payoff in the table.

aC s
v i y re

References

Multiple Choice Difficulty: 2 Medium

ed d

MC Qu. 9-45 Learning Objective:

ar stu

Based on the Describe and evaluate

following payoff... several alternative
criteria for making a
decision based on a
sh is

payoff table.
Th

This study source was downloaded by 100000829029605 from CourseHero.com on 07-22-2021 09:59:48 GMT -05:00

https://www.coursehero.com/file/39657811/Operations-Management-Homework-6pdf/
  
 46. Award: 10.00 points  

MC Qu. 9-46 Based on the following payoff...

Based on the following payoff table, answer the following:

 
Alternative High Medium Low
A 20 20 5
B 25 30 11
C 30 12 13
D 10 12 12
E 50 40 −28
Prior Probability 0.3 0.2 0.5
 
The maximin strategy is:

 A.

m
e r as
 B.

co
 C.

eH w
 D.

o.
 E.
rs e
ou urc
The maximin strategy chooses the alternative that has the highest minimum payoff. In this case, "C" has a
o

minimum payoff of 13.

aC s
v i y re

References

Multiple Choice Difficulty: 2 Medium

ed d

MC Qu. 9-46 Learning Objective:

ar stu

Based on the Describe and evaluate

following payoff... several alternative
criteria for making a
decision based on a
sh is

payoff table.
Th

This study source was downloaded by 100000829029605 from CourseHero.com on 07-22-2021 09:59:48 GMT -05:00

https://www.coursehero.com/file/39657811/Operations-Management-Homework-6pdf/
  
 47. Award: 10.00 points  

MC Qu. 9-47 Based on the following payoff...

Based on the following payoff table, answer the following:

 
Alternative High Medium Low
A 20 20 5
B 25 30 11
C 30 12 13
D 10 12 12
E 50 40 −28
Prior Probability 0.3 0.2 0.5
 
The maximum likelihood strategy is:

 A.

m
e r as
 B.

co
 C.

eH w
 D.

o.
 E.
rs e
ou urc
The maximum likelihood strategy starts by identifying the most likely state of nature. In this case, the state of
o

nature "Low" has the highest probability. Next, the strategy chooses the alternative that has the highest payoff
for this state of nature. In this case, "C" has the highest payoff of 13 for the state of nature "Low".
aC s
v i y re

References

Multiple Choice Difficulty: 2 Medium

ed d
ar stu

MC Qu. 9-47 Learning Objective:

Based on the Describe and evaluate
following payoff... several alternative
criteria for making a
sh is

decision based on a
payoff table.
Th

This study source was downloaded by 100000829029605 from CourseHero.com on 07-22-2021 09:59:48 GMT -05:00

https://www.coursehero.com/file/39657811/Operations-Management-Homework-6pdf/
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