Given is a decision payoff table and a Sub Decision Payoff Table. Use Minimax Re
ID: 453141 • 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
41
37
36
Medium Facility
32
38
34
Large Facility
-8
32
42
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
41
37
36
Medium Facility
32
38
34
Large Facility
-8
32
42
Explanation / Answer
The first step in minimax regret is to prepare a table of regrets. To do this subtract each column with best payoff in that column
=41-(-8)=49
Next step is to find the worst regret for each alternative. For the first alternative is, the worst is 6, for the second the worst is 9 and for the third the worst is 49
The best of the worst regrets would be choosen as minimax regret. The lowest regret is 6 which is for small facility.
a) The worst regrets for alternative Small Facility is 6
b) The worst regrets for alternative Medium Facility is 9
c)The worst regrets for alternative Large Facility is 49
d)The best course of action or decision by using Minimax Regret is to select small facility.
Alternatives/Regrets Low Moderate High small facility =41-41=00 =38-37=1 =42-36=6 Medium facility =41-32=09 =38-38=0 =42-34=8 Large facility=41-(-8)=49
=38-32=6 =42-42=0Related Questions
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