Given the following pay-off table Number of Text Books to Order Number of Introductory Economics Classes Offered
Question:
Given the following pay-off table
| Number of Text Books to Order | Number of Introductory Economics Classes Offered | |||
7 | 8 | 9 | 10 | |
280 | $2,800 | $2,720 | $2,640 | $2,480 |
320 | $2,600 | $3,200 | $3,040 | $2,880 |
360 | $2,400 | $3,000 | $3,600 | $3,440 |
400 | $2,200 | $2,800 | $3,400 | $4,000 |
Question 1
What is the optimal decision if you use the Maximax criterion?
Group of answer choices
a. Order 280 books
b. Order 320 books
c. Order 360 books
d. Order 400 books
Question 2
What is the optimal decision if you use the maximin criterion?
Group of answer choices
a. Order 280 books
b. Order 320 books
c. Order 360 books
d. Order 400 books
Question 3
By how much will you regret if you order 360 books and the class offered is 7?
Group of answer choices
a. 200
b. 300
c. 400
d. 500
Question 4
What is the optimal decision if you use the minimax regret criterion?
Group of answer choices
a. Order 280 books
b. Order 320 books
c. Order 360 books
d. Order 400 books
Question 5
If the probabilities of the following events are given
P (7 classes offered) = 0.1
P (8 classes offered) = 0.3
P (9 classes offered) = 0.4
What is the Expected Monetary Value of ordering 360 books?
Group of answer choices
a. 3268
b. 2648
c. 3233
d. 2455
Question 6
What is the Expected Regret of ordering 400 books?
Group of answer choices
a. 300
b. 200
c. 260
d. 320
Question 7
What is the value of perfect information?
Group of answer choices
a. 112
b. 212
c. 300
d. 200
Expert Answer:
Inquiry 1 When applying the Maximax criterion what choice is best d Purchase 400 books The best choice is to place an order for 400 volumes Using the ... View the full answer
