Question: Expected savings E ( M 1 ) = 1 0 * 0 . 3 + 2 0 * 0 . 2 5 + 3 0

Expected savings
E(M1)=10*0.3+20*0.25+30*0.45=21.5
E(M2)=22*0.3+26*0.25+26*0.45=24.8
E(M3)=40*0.3+30*0.25+15*0.45=26.25
the best policy based on the most probable future criteria is M3
Laplace ryke method
L1 L2 L3 Expected Payoff
M1102030(10+20+30)/3=20
M2222626(22+26+26)/3=24.67
M3403015(40+30+15)/3=28.33
M3 is best on this basis
Maximax rule
L1 L2 L3 maximum of row
M110203030
M222262626
M340301540
M3 has payoff 40 s
Hurwicz rule
L1 L2 L3 max of row min of row P=0.2*Max +0.8*Min
M110203030106+8=14
M2222626262222.8
M3403015401520
M2 is best policy by this rule

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