Statıstıcs Iı Deneme Sınavı Sorusu #1072146

Answer the questions 7-8 according to following information.

A company has 5 different alternative actions denoted by A1, A2,..A5 under 3 possible states of nature, which are denoted by S1, S2 and S3. The pay off matrix for each action and state of nature is given as:

What will be the best action under maximax criterion?


A1

A2

A3

A4

A5


Yanıt Açıklaması:

maxA1=max(7,10,8)=10

maxA2=max(9,7,12)=12

maxA3=max(14,13,11)=14*

maxA4=max(9,8,6)=9

maxA5=max(7,4,5)=7

Thus A3 gives the maximum of maximum possible payoffs.

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