Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Question 13 Consider the following payoff table that represents the profits earned for each alternative (A, B, and C) under the states of nature S1,

Question 13

Consider the following payoff table that represents the profits earned for each alternative (A, B, and C) under the states of nature S1, S2, and S3. 

                  S1        S2        S3

       A        $60      $145    $120       B            $75      $125   $110

       C        $95      $85      $130

 

Refer to the payoff table. Using the criterion of realism and an alpha value of 0.7, what would be the highest expected payoff?


a.$98.50


b.$ 119.50


c.$116


d.$ $127


Question 14

1) Consider the following linear programming model:

Max           X12 + X2 + 3X3

Subject to:

                  X1 + X2 ≤ 3

                  X1 + X2 ≤ 1

                  X1, X2 ≥ 0

This problem violates which of the following assumptions?


a.proportionality


b.linearity


c.divisibility


d.certainty


Question 15

Consider the following payoff table that represents the profits earned for each alternative (A, B, and C) under the states of nature S1, S2, and S3. 

                  S1        S2        S3

       A        $60      $145    $120       B            $75      $125   $110

       C        $95      $85      $130

 

Refer to the payoff table. Using the maximax criterion, what would be the highest expected payoff?


a.$145


b.$120


c.$110


d.$124


Question 16

Consider the following payoff table that represents the profits earned for each alternative (A, B, and C) under the states of nature S1, S2, and S3. 

                  S1        S2        S3

       A        $60      $145    $120       B            $75      $125   $110

       C        $95      $85      $130

 

Refer to the payoff table. What is the expected value under certainty? Assume P(S1) = 0.5 and P(S2) = 0.25.



a.$103.33


b.$101.25


c.$108.33


d.$116.25



Question 17

Which of the following models is a picture or drawing of reality?


a.scale model


b.mathematical model


c.physical model


d.schematic model

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Question 13 Criterion of Realism Hurwicz Criterion formula is Payoff MaxPayoffforthealternative 1 MinPayoffforthealternative textPayoff alpha times te... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics Informed Decisions Using Data

Authors: Michael Sullivan III

5th Edition

978-0134135373, 134133536, 134135377, 978-0134133539

More Books

Students explore these related General Management questions