Your hotel is considering expanding its meeting space. Plan A is to increase 500 m; Plan...

 

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Your hotel is considering expanding its meeting space. Plan A is to increase 500 m²; Plan B, 1,000 m²; Plan C, 1,500 m²; and Plan D, 2,000 m². The payoffs of its plan depends of the future demand. Their respective payoffs under the different state of nature are given in the table below: Question 1: (no need to put down the $ sign in your answer) You are required to fill in the values A to P of the regret table: A $ B $ C$ D $ E$ F$ G$ H $ 1$ J$ K$ L$ M $ N $ 0 $ P $ Question 2: (Put down either A, B, C or D in the answer box) Which product would you choose if you are optimistic about the future? Plan Which product would you choose if you are pessimistic about the future? Plan Which product would you choose if you believe that there is equal chance for all 3 states of nature? Plan Which product would you choose if Minimax-regret is being used? Plan Your hotel is considering expanding its meeting space. Plan A is to increase 500 m²; Plan B, 1,000 m²; Plan C, 1,500 m²; and Plan D, 2,000 m². The payoffs of its plan depends of the future demand. Their respective payoffs under the different state of nature are given in the table below: Question 1: (no need to put down the $ sign in your answer) You are required to fill in the values A to P of the regret table: A $ B $ C$ D $ E$ F$ G$ H $ 1$ J$ K$ L$ M $ N $ 0 $ P $ Question 2: (Put down either A, B, C or D in the answer box) Which product would you choose if you are optimistic about the future? Plan Which product would you choose if you are pessimistic about the future? Plan Which product would you choose if you believe that there is equal chance for all 3 states of nature? Plan Which product would you choose if Minimax-regret is being used? Plan

Answer rating: 100% (QA)

SOLUTION A 3000 500 6 B2000 500 4 C1000 500 2 D 0 500 0 E1000 1000 2 F2000 1000 4 G 3000 1000 6 H400... View the full answer