The following payoff table shows the profit for a decision problem with three states of nature and two decision alternatives:
State of Nature
DA s1 s2 s3
d1 -20 40 100
d2 10 45 70
I need to make a decisions using the mini-max regret approaches and justify the decisions?© BrainMass Inc. brainmass.com June 3, 2020, 6:57 pm ad1c9bdddf
In order to find the best decision using the mini-max regret approach, then we must start by find the Regret values for each state of nature.
The regret for a decision given a state of nature is the difference between the payoff of that decision, and the payoff from the best ...
This solution walks the student through the mini-max regret approach for the table matrix decision.