(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 Small = $_______

Maximum payoff for alternative Medium = $________

Maximum payoff for alternative Large = $________

Maximum for payoff alternative Very large = $________

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 Small = $________

Minimum payoff for alternative Medium = $_________

Minimum payoff for alternative Large = $_________

Minimum payoff for alternative Very large = $________

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 Small = $_________

Average payoff for alternative Medium = $_________

Average payoff for alternative Large = $_________

Average payoff for alternative Very large = $_________

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.2 Question Help Even though independent gasoline stations have been having a difficult time, lan Langella has been thinking about starting his own independent gasoline station. lan's problem is to decide how large his station should be. The annual returns will depend on both the size of his station and a number of marketing factors related to the oil industry and demand for gasoline. After a careful analysis, lan developed the following table: Size of First Station Small Medium Large Very Large States of Nature Good Market Fair Market $60,000 $21,000 $70,000 $32,000 $95,000 $32,500 $280,000 $24.000 Poor Market -$12,000 -$18,000 - $42,000 - $150,000 For example, if Ian constructs a small station and the market is good, he will realize a profit of $60,000. This exercise contains only parts b, c, and d. b) 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 parts remaining Clear All Final Check