# Question

Basing their decisions on optimism (that is, maximizing maximum gains or minimizing minimum losses), what decisions should be reached by

(a) The manufacturer of Example 9.1;

(b) Ms. Cooper of Exercise 9.12;

(c) The truck driver of Exercise 9.13?

(a) The manufacturer of Example 9.1;

(b) Ms. Cooper of Exercise 9.12;

(c) The truck driver of Exercise 9.13?

## Answer to relevant Questions

Suppose that the manufacturer of Example 9.1 is the kind of person who always worries about losing out on a good deal. For instance, he finds that if he delays expansion and economic conditions remain good, he will lose out ...Each of the following is the payoff matrix of a zero-sum two- person game. Find the saddle point (or saddle points) and the value of each game: (a) (b) There are two gas stations in a certain block, and the owner of the first station knows that if neither station lowers its prices, he can expect a net profit of $ 100 on any given day. If he lowers his prices while the other ...A statistician has to decide on the basis of a single observation whether the parameter θ of the density Equals θ1 or θ2, where θ1 < θ2. If he decides on θ1 when the observed value is less than the constant k, on θ2 ...Show that the sample proportion X/n is a minimum variance unbiased estimator of the binomial parameter θ.Post your question

0