Question: Using the COST table below (where (costs are in USD millions). Show all your work/calculations: Determine the best alternative using the Maximin criterion (explain). Determine

Using the COST table below (where (costs are in USD millions). Show all your work/calculations:

  1. Determine the best alternative using the Maximin criterion (explain).
  2. Determine the best alternative using the Maximax criterion (explain).
  3. Determine the best alternative using the Laplace criterion (explain).
  4. Determine the best alternative using the expected monetary value (cost) criterion; probabilities are below each state of nature in the table below.
  5. Determine the best alternative using the Minimax Regret criterion (explain).

Alternative

 State of Nature (Costs in USD millions)
Small demand (0.40) Medium Demand (0.35) Large Demand (0.25)
A 2.0 2.3 2.7
B 2.5 3.0 2.5
C 2.8 2.4 3.5

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