Determine the approximate decision under uncertainty


Problem: Given the following conditional value table:

Very Favorable Average Unfavorable

Alternatives Market Market Market

Build new plant $350,000 $240,000 -$300,000
Subcontract $180,000 $ 90,000 -$ 20,000
Overtime $110,000 $ 60,000 -$ 10,000
Do nothing $ 0 $ 0 $ 0

Determine the approximate decision under uncertainty using:

a) Maximax
b) Maximin
c) Equally likely

Solution Preview :

Prepared by a verified Expert
Other Management: Determine the approximate decision under uncertainty
Reference No:- TGS01861524

Now Priced at $25 (50% Discount)

Recommended (92%)

Rated (4.4/5)