Assignment:
Given the following conditional value table, determine the appropriate decision under uncertainty using:
a) Maximax
b) Maximin
c) Equally likely
STATES Of Nature
|
|
Very Favourable Market
|
Average Market
|
Unfavourable Market |
|
|
Build new plant
|
$350,000
|
$140,000
|
-$300,000
|
|
Subcontract
|
$180.000
|
$ 90.000
|
-$ 20,000
|
|
Oaertime
|
$110,000
|
$ 60.000
|
-$ 10,000
|
|
Do nothing
|
$ 0
|
$ 0
|
$ 0
|
Provide complete and step by step solution for the question and show calculations and use formulas.