W$24$ BUAD$306$ Murphy LAST NAME FIRST: $\_\_$

Assignment $3$ Decision Theory $(25$ pts$)$ Due: Tues, $1/16$ at $11$:$59$pm EST

Instructions: Print this page, reproduce by hand or complete via computer. Regardless, you must note answers in the

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ANALYSIS $1$

COST

Payoff

Table

$1.$ Assume no probabilities are available with the data above. What is the

MAXIMIN choice? State location AND $ value.

Answer $(2$ pts$)$:

Location: $\_\_\_\_\_\_\_\_\_\_$ $ $\_\_\_\_\_\_$

$2.$ Assume no probabilities are available with the data above. What is the

MAXIMAX choice? State location AND $ value.

Answer $(2$ pts$)$:

Location: $\_\_\_\_\_\_\_\_\_\_$ $ $\_\_\_\_\_\_$

$3.$ Assume no probabilities are available with the data above. What is the

LAPLACE choice? State location AND $ value.

Answer $(2$ pts$)$:

Location: $\_\_\_\_\_\_\_\_\_\_$ $ $\_\_\_\_\_\_$

$4.$ Assume the probability for of low demand is $40\%$ and high demand is

$20\%.$ What is the EMV for Q$?$

Answer $(2$ pts$)$: $\_\_\_\_\_\_\_\_\_\_\_\_\_$

$5.$ Assume the probability for of low demand is $40\%$ and high demand is

$20\%.$ What is the EMV for R$?$

Answer $(2$ pts$)$: $\_\_\_\_\_\_\_\_\_\_\_\_\_$

$6.$ Assume the probability for of low demand is $40\%$ and high demand is

$20\%.$ What is the EMV for S$?$

Answer $(2$ pts$)$: $\_\_\_\_\_\_\_\_\_\_\_\_\_$

Location Demand

Low Moderate High

Q $60,00080,000140,000$

R $70,000100,000180,000$

S $150,00090,00050,000$