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An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin
Edition 13ISBN: 978-1439043271An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin
Edition 13ISBN: 978-1439043271 Exercise 16
Suppose that a decision maker faced with four decision alternatives and four states of nature develops the following profit payoff table: 
a. If the decision maker knows nothing about the probabilities of the four states of nature. What is the recommended decision using the optimistic, conservative, and minimax regret approaches?
b. Which approach do you prefer? Explain. Is establishing the most appropriate approach before analyzing the problem important for the decision maker? Explain.
c. Assume that the payoff table provides cost rather than profit payoff. What is the recommended decision using the optimistic, conservative, and minimax regret approaches?
a. If the decision maker knows nothing about the probabilities of the four states of nature. What is the recommended decision using the optimistic, conservative, and minimax regret approaches?
b. Which approach do you prefer? Explain. Is establishing the most appropriate approach before analyzing the problem important for the decision maker? Explain.
c. Assume that the payoff table provides cost rather than profit payoff. What is the recommended decision using the optimistic, conservative, and minimax regret approaches?
Explanation
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An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin
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