The following table is a cost-based table. Please answer the following questions by using this table....
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The following table is a cost-based table. Please answer the following questions by using this table. State of Nature Strategies N N N3 S 35 20 5 S 50 25 -15 S3 15 30 10 S4 -10 15 40 S5 40 0 -5 N4 N5 0 15 60 -5 -15 20 -20 0 40 15 a) Find the optimum strategy with the optimism criterion. (5P) b) Find the optimum strategy with the pessimism criterion. (5P) c) Find the optimum strategy with the Hurwicz criterion. (a = 0,5) (5P) d) Find the optimum strategy with Laplace criterion. (7P) e) Find the optimum strategy under risk with the possibilities of 0,2; 0,2; 0,1; 0,2 and 0,3 respectively to the state of natures. (8P) f) Find the optimum strategy with the regret criterion. (10P) The following table is a cost-based table. Please answer the following questions by using this table. State of Nature Strategies N N N3 S 35 20 5 S 50 25 -15 S3 15 30 10 S4 -10 15 40 S5 40 0 -5 N4 N5 0 15 60 -5 -15 20 -20 0 40 15 a) Find the optimum strategy with the optimism criterion. (5P) b) Find the optimum strategy with the pessimism criterion. (5P) c) Find the optimum strategy with the Hurwicz criterion. (a = 0,5) (5P) d) Find the optimum strategy with Laplace criterion. (7P) e) Find the optimum strategy under risk with the possibilities of 0,2; 0,2; 0,1; 0,2 and 0,3 respectively to the state of natures. (8P) f) Find the optimum strategy with the regret criterion. (10P)
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SOLUTION To find the optimum strategy based on different decision criteria we can use the provided costbased table Lets analyze each criterion step by ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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