COURSE SUBJECT: ENGINEERING MANAGEMENT

4. PROBLEM ON UNCERTAINTY Decision Making Under Uncertainty In the Table, we apply the concept of Maximax choice, the Maxmin choice, and the equally likely choice. Given the data/information in the Table compute for the row average. After that, determine the amount of the ROW AVERAGE that would be adopted to be best alternative. The best alternative is the alternative with the highest value of the row average. In this case, which option is more attractive? Values in Php State of Nature Favorable Unfavorable Market Market Maximum in Row Minimum in Row Alternatives Row Average Investment a 500,000.00 200,000.00 500,000.00 200,000.00 Investment B 400,000.00 250,000.00 400,000.00 250,000.00 300,000.00 10,000.00 300,000.00 10,000.00 Investment C Investment D (DO Nothing) 0 0 0 0 0 a) Investment A b) Investment B c) Investment C d) Investment D