(a) Using the decision making under uncertainty with the criterion of Maximax

This method finds an alternative that maximizes the maximum outcome for every alternative. First, we find the maximum outcome within every alternative, and then we pick the alternative with the maximum number.

Firstly identify the Maximum Payoff for each alternative.

Maximum payoff for alternative Build new plant = $__________

Maximum payoff for alternative Subcontract = $__________

Maximum payoff for alternative Overtime = $__________

Maximum for payoff alternative Do Nothing = $__________

Using the decision making under uncertainty with the criterion of Maximax

The appropriate decision will be __________?

The value of the return under this decision is $__________?

(b) Using the decision making under uncertainty with the criterion of Maximin

This method finds the alternative that maximizes the minimum outcome for every alternative. First, we find the minimum outcome within every alternative, and then we pick the alternative with the maximum number

Firstly identify the Minimum Payoff for each alternative.

Minimum payoff for alternative Build new plant = $__________

Minimum payoff for alternative Subcontract = $__________

Minimum payoff for alternative Overtime = $__________

Minimum payoff for alternative Do Nothing = $__________

Using the decision making under uncertainty with the criterion of Maximin

The appropriate decision will be __________?

The value of the return under this decision is __________?

(c) Using the decision making under uncertainty with the criterion of Equally Likely

This method finds the alternative with the highest average outcome. First, we calculate the average outcome for every alternative, which is the sum of all outcomes divided by the number of outcomes. We then pick the alternative with the maximum number.

Firstly determine the Average Payoff for each alternative.

Average payoff for alternative Build new plant = $__________

Average payoff for alternative Subcontract = $__________

Average payoff for alternative Overtime = $__________

Average payoff for alternative Do Nothing = $__________

Using the decision making under uncertainty with the criterion of Equally Likely

The appropriate decision will be __________?

The value of the return under this decision is ______?

(response should be rounded to nearest whole number)

Problem A.1 Question Help Given the following conditional value table: Unfavorable Market Alternatives Build new plant Subcontract Overtime Do Nothing Very Favorable Market $250,000 $270,000 $100,000 $0 States of Nature Average Market $180,000 $185,000 $50,000 $0 - $200,000 - $220,000 -$12,000 $0 a) Using the decision making under uncertainty with the criterion of Maximax The appropriate decision will be Click to select your answer(s) and then click Check Answer. ? 5 Pemaining parts Clear All Final Check