1.         For the pay – off matrix given below, find best course of action using :

(i)         EMV criterion            (ii)        EOL criterion             (iii)       Maximin criterion

(iv)       Maximax criterion     (v)        Laplace criterion      (vi)       Minimax Regret

 State of Nature Pay – off Matrix (Profit in `) Probability Acts A1 A2 A3 S1 50 – 20 – 250 0.1 S2 800 880 800 0.7 S3 1300 1480 1500 0.2

(Ans. Maximum = 50, Maximum = 1500, Laplace = 780, Maximum = 70)

2.         The following table is pay off of four alternative plans under each of five possible states of nature.

(i)      Obtain   (a)       maximin and             (b)       maximax        (c)        Laplace solution

(ii)     Further find the regret table and obtain Minimax solution

(iii)    If =0.6 obtain Hurwitz solution for the pay off table.

 S1 S2 S3 S4 S5 A1 36 24 15 24 28 A2 36 24 34 40 30 A3 28 24 19 28 28 A4 32 24 19 28 30

(Ans.  :   (i) P2,  (ii)  P1,   (iii)  P1,  (iv)  P2,   (v)  P2)

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