The time that car 4 will have to wait to be
Answer(s): C
Car 4 arrives at the just-vacated island window 4 minutes after car . It must wait 4 minutes for car to be serviced.
The decision rule that selects the strategy with the highest utility payoff if the worst state of nature occurs is the
The maximin rule determines the minimum payoff for each decision and then chooses the decision with the maximum minimum payoff. It is a conservative criterion adopted by risk- averse players, that is, those for wham the disutility of a loss exceeds the utility of an equal gain.
Your company Company '' has decided to enter the European market with one of its products and is now considering three advertising strategies. This market currently belongs to Company X. Company X is mare that your company is entering the market and is itself considering steps to protect its market. An analyst for your company has identified three strategies Company X might develop and has shown the payoffs for each in the tables below The analyst has formulated this
Answer(s): A
Game theory is a mathematical approach to decision making when confronted with an enemy or competitor. Games are classified according to the number of players and the algebraic sum of the payoffs. In a two-player game, if the payoff is given by the loser to the winner, the algebraic sum is zero, and the game is a zero-sum game. However, if it is possible for both players to profit, the game is a positive sum game. In this situation, the sum of the payoffs for each combination of strategies is zero. For example, if X takes no action and 1` chooses limited advertising. QC's payoff is -1 and Y's is 1. A bank plans to open a branch in one of five locations labeled L1, L2, L3, L4, L5). Demand for bank services may be high, medium, or low at each of these locations. Profits for each location-demand combination are presented in the payoff matrix.
If the bank uses the rnaxirna criterion for selecting the location of the branch, it will select
Answer(s): D
Under the maximax criterion, the decision maker selects the choice that maximizes the maximum profit. The maximum profits for the five locations areA bank plans to open a branch in one of five locations labeled L1, L2, L3, L4, L5). Demand for bank services may be high, medium, or low at each of these locations. Profits for each location-demand combination are presented in the payoff matrix.
If the bank uses the minimax regret criterion for selecting the location of the branch, it will select
Answer(s): B
Under the minimax regret criterion, the decision maker selects the choice that minimizes the maximum regret (opportunity cost)the maximum regret for each location is determined from the opportunity loss matrix.the maximum regret for each location is the highest number in each column as indicated below.The location with the minimum regret is L2. If demand is low, L2 has a payoff 2, whereas L1 has a payoff of 7. A bank plans to open a branch in one of five locations labeled L1, L2, L3, L4, L5). Demand for bank services may be high, medium, or low at each of these locations. Profits for each location-demand combination are presented in the payoff matrix.
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