a) Describe info-gap decision theory citing its three models of decision making under uncertainty. [6 Marks]...

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a) Describe info-gap decision theory citing its three models of decision making under uncertainty. [6 Marks] b) Kerubo is dealing with uncertain income situation. She expect to make Ksh. 20,000 per week, while if she make under Ksh. 12,000 she will be unable to afford accommodation and will sleep in the street, and if she make over Ksh. 30,000 they will be able to afford a night's entertainment. i) Determine opportuneness of her decision. [2 Marks] Suppose now Kerubo think of moving to a different town, where the work pays less but accommodations are cheaper. Kerubo estimates that she will earn Ksh. 16,000 per week, but accommodation will cost Ksh. 8,800, while entertainment still costs Ksh. 30,000. ii) Determine robustness of her decision. [2 Marks] c) Differentiate between absolute error and functional error models as used in the Kerubo case in i) and ii). [5 Marks] a) Describe info-gap decision theory citing its three models of decision making under uncertainty. [6 Marks] b) Kerubo is dealing with uncertain income situation. She expect to make Ksh. 20,000 per week, while if she make under Ksh. 12,000 she will be unable to afford accommodation and will sleep in the street, and if she make over Ksh. 30,000 they will be able to afford a night's entertainment. i) Determine opportuneness of her decision. [2 Marks] Suppose now Kerubo think of moving to a different town, where the work pays less but accommodations are cheaper. Kerubo estimates that she will earn Ksh. 16,000 per week, but accommodation will cost Ksh. 8,800, while entertainment still costs Ksh. 30,000. ii) Determine robustness of her decision. [2 Marks] c) Differentiate between absolute error and functional error models as used in the Kerubo case in i) and ii). [5 Marks]

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a Infogap decision theory is a decisionmaking framework that addresses decision problems in the presence of severe uncertainty It acknowledges that in many realworld situations decision makers often l... View the full answer