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could someone please help with this question please? thank you in advance Q3 (a) (i Using the Payoff table below, choose the optimum Production Process
could someone please help with this question please? thank you in advance
Q3 (a) (i Using the Payoff table below, choose the optimum Production Process by calculating the Maximin Criterion. Level of Demand Production Process Moderate High f 86,000 160,000 180,000 89,000 165,000 170,000 80,000 185,000 210,000 The manufacturer is confident with a Coefficient of Realism of 60% that the new product will be a success. Choose the Production Process by calculating the Criterion of Realism. (iii) To understand the largest amount of regret the manufacturer might have. Choose the Production Process by calculating the Minimax Regret Criterion. (b) Using the same Payoff table above in Part (a) (i, the manufacturer knows that for all previous new products 30% have met a low demand, 25% have met a moderate demand and 45% have met a high demand. Calculate the Expected Monetary Value through a Decision Tree, which Production Process would be selected? (ii) oes the decision made in Part (b) (i change if the following information is given? Payoff Utility Risk 80,000 0 0.10 86,000 0.12 89,000 0.18 160,000 0.20 165,000 0.30 170,000 180,000 0.50 185,000 0.81 210,000
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