A decision maker who is considered to be a risk taker is faced with this set of probabilities and payoffs.
State of Nature
Decision s1 s2 s3
d1 5 10 20
d2 -25 0 50
d3 -50 -10 80
probability 0.30 0.35 0.35
Rank the decision alternatives on the basis of expected value.© BrainMass Inc. brainmass.com October 25, 2018, 1:50 am ad1c9bdddf
This solution is comprised of a detailed explanation of the various aspects of Decision Analysis as it pertains to the given problem and provides students with a clear perspective of the calculations and underlying concepts.
Linear Programming, Queueing Analysis, Simulations, Decision Analysis and Forecasting
A) What are 2 possible ways to improve the service rate of a waiting line operation?
B) Briefly describe how simulation could be used to assist decision makers in regards to new product development?
C) Give an example of how Decision analysis could be used to determine an optimal strategy? Briefly describe several decision alternatives a decision maker would be faced with and possible uncertain future events to consider.
D) What is the difference between quantitative forecasting methods and qualitative forecasting methods?
E) Under what circumstances would it be more appropriate to use quantitative rather than qualitative forecasting methods?
F) Give an example of a situation when using quantitative forecasting would be appropriate?View Full Posting Details