The following payoff table provides profits based on various possible decision alternatives and various levels of demand. ALTERNATIVE DEMAND LOW  MEDIUM HIGH Alternative 1 40 80 150 Alternative 2 80 120 130 Alternative 3 100 100 100 a. Which alternative should be chosen using the equally likely decision criterion? b. Set-up the opportunity loss table. c. Which alternative should be chosen using the minimax regret criterion?

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The following payoff table provides profits based on various possible decision alternatives and various levels of demand.



ALTERNATIVE

DEMAND

LOW 

MEDIUM

HIGH

Alternative 1

40

80

150

Alternative 2

80

120

130

Alternative 3

100

100

100

a. Which alternative should be chosen using the equally likely decision criterion?

b. Set-up the opportunity loss table.

c. Which alternative should be chosen using the minimax regret criterion?

 

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