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Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Re

ID: 433467 • 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 High 29 26 35 Low Moderate 28 36 27 Alternatives Small Facility 35 Large Facility -7 Alternatives Worst Regrets Medium Facility22 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

Explanation / Answer

Worst regret is when the organization loses maximum payoff.

Small facility = 35

Medium facility = 36

Large facility = 35

Low

Moderate

High

Minimax

Small

35

28

29

35

Medium

22

36

26

36

Large

-7

27

35

35

Minimax regret = Small or Large facility

Low

Moderate

High

Minimax

Small

35

28

29

35

Medium

22

36

26

36

Large

-7

27

35

35

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