Need show all step Using Maximin Criteria to choose an alter

Need show all step

Using Maximin Criteria to choose an alternative.(1 Point)

Using Maximax Criteria to choose an alternative(1 Point)

Using Laplace Criteria to choose an alternative(1 Point)

Using Minimax Regret Criteria to choose an alternative(2 Point)

Solution

Maximin Criteria: Selecting the maximum out of the minimums of the three. The minimum demand for the beautician one, two and three are 50, 0 and -100 respectively. The maximum value of the 3 is 50. So by Maximin criteria Beautician One should be chosen.

Maximax Criterian : Selecting the maximum out of the maximums. The maximum value of the 3 beauticians are 100, 100 and 300. The maximum of the 3 values is 300 which belongs to Beautician Three. So as per this criteria beautician Three should be chosen.

Laplace Criteria : Selecting the option having the maximum average payoff. So for Beautician one, two and three the average values are 75, 66.67 and 90 respectively So the maximum average pertains to Beautician three. Therefore, by Laplace criteria too Beautician Three should be chosen.

Minimax Regret Criteria: Determine the worst regret for each alternative and choose the one with the \"best\" worst. For example if the demand is low then the best case scenario is beautician one. So if we chose beautician one there is no regret. But if we choose two and three then our regret would be 50 (50-0) and 150 (50-(-100)) respectively. Similary we do the computation for other scenarios. So the regret table shall be as follows.

During the three scenarios we see that the maximum regret for chosing choosing one, two and three are 200, 200 and 150 respectively. Of this 150 is the \"best worst\" regret of the three alternatives. Therefore, as per the Minimax Regret Criterial too Beautician 3 is the right choice.