Which alternative should the firm choose under the maximax c

Which alternative should the firm choose under the maximax criterion?Which option should the firm choose under the maximin criterion?Which option should the firm choose under the LaPlace criterion?Which option should the firm choose with the Hurwicz criterion with ?= 0.4?

Which alternative should the firm choose under the maximax criterion?Which option should the firm choose under the maximin criterion?Which option should the firm choose under the LaPlace criterion?Which option should the firm choose with the Hurwicz criterion with ?= 0.4?

Solution

35.2

Hence by maximax firm should choose virginia

by maxmini firm should choose maryland

by laplace firm should choose Virginia

by Hurcwicz firm should choose Maryland.

Decision Alternative Declining Same Improving Maximax Maximin Laplace(average) Max * 0.4 Min*(1-0.4) Hurwicz criterion (column 8 + column9) Kentucky 44 38 30 44 30 37.33333333 17.6 18 35.6 Maryland 38 37 36 38 36 37 15.2 21.6 36.8 North Carolina 39 34 31 39 31 34.66666667 15.6 18.6 34.2 Tennesee 46 34 28 46 28 36 18.4 16.8 35.2 Virginia 50 42 26 50 26 39.33333333 20 15.6 35.6
Hence by maximax firm should choose virginia by maxmini firm should choose maryland by laplace firm should choose Virginia by Hurcwicz firm should choose Maryland.