1) The following is an opportunity loss table.
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States of Nature
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Alternatives
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A
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B
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C
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Alternative 1
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0
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90
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85
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Alternative 2
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50
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0
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110
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Alternative 3
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75
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80
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0
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|
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What decision should be made based on the minimax regret criterion?
A) Alternative 1
B) Alternative 2
C) Alternative 3
D) State of Nature A
E) Does not matter
2) CleanClothes dry cleaners is opening a pick-up and delivery service. There is only one other dry cleaner that currently offers this service. To advertise, CleanClothes is considering either newspaper ads or attaching flyers to the doors of many local homes. The payoff for each of CleanClothes' potential strategies is given in the table below. What strategy will the existing dry cleaners (Y) play?
Y1 (newspaper ads) Y2 (flyers)
X1 (newspaper ads) 52 37
X2 (flyers) 26 18
A) X1
B) X2
C) Y1
D) Y2
E) Not enough information given
3) Considering the following two-person game, what percentage of the time should X play strategy X2?
Y1 Y2
X1 6 3
X2 2 8
A) 1/3
B) 2/3
C) 4/9
D) 5/9