SUBJECT PROJECT MANAGMENT

Q 9: After successfully completing your Masters, you all have four choices to start your careers. These include (i) your own business, (ii) job in public sector, (iii) job in private sector, and (iv) freelancer/contractor. These are uncertain times and you know that there are five states of nature one of which you will encounter. In order to select a career, some of you want to rely on Optimists' Criterion. Some on Wald's Criterion, a few like to base their decision on Laplace's Criterion while some would try Savage's Criterion. For the payoff matrix (Table 1), a. Find the alternatives (career) that can be selected by various individuals based on the strategies mentioned above. You need to show your calculations. b. Apply Hurwicz criterion by varying coefficient of optimisms ( ) between zero and one in steps of 0.025 and plot the resulting Hurwicz weighted averages (Hi) for the four alternatives against . c. Use the above plot and identify which choices can be made and the corresponding range of values by those who want to rely on the Hurwicz criterion. Table 1: Payoff Matrix