Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Re
ID: 325915 • Letter: G
Question
Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Regret as an evaluation criterion to evaluate alternatives.
Future Demand
Alternatives
Low
Moderate
High
Small Facility
12
13
14
Medium Facility
-1
23
16
Large Facility
-8
15
23
Alternatives
Worst Regrets
Small Facility
?
Medium Facility
?
Large Facility
?
a) The worst regrets for alternative Small Facility is
b) The worst regrets for alternative Medium Facility is
c) The worst regrets for alternative Large Facility is
d) The best course of action or decision by using Minimax Regret is to select___________ facility
Future Demand
Alternatives
Low
Moderate
High
Small Facility
12
13
14
Medium Facility
-1
23
16
Large Facility
-8
15
23
Explanation / Answer
First we find the oppurtinity loss table (Regret table)
Regret = Best payoff - Payoff received
Worst regret is the highest in each alternative.
The worst regret for alternative small facility is 10
The worst regret for alternative medium facility is 13
The worst regret for alternative large facility is 20
Among the worst regret we select the best which is 10 ie small faciliy
The best course of action or decision by using minimax regret is to select small facility
Alternative Low Moderate High Small facility 12-12 = 0 23-13=10 23-14 = 9 Medium facility 12-(-1)=13 23-23=0 23-16=7 Large facility 12-(-8)= 20 23-15=8 23-23=0Related Questions
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