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    Managerial Decision Modeling With Spreadsheets (Answer Key) P2-14-1

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    Rahim Rajani
    This document presents a decision analysis with three alternatives - expand, move, or no change. It lists the potential outcomes (good, average, poor) and associated dollar values for each alternative. It also calculates the maximum choice, minimum choice, average choice, Hurwicz with an alpha of 0.4, and minimax values for each alternative to help evaluate the options. The best alternative based on each calculation is identified.

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    Managerial Decision Modeling With Spreadsheets (Answer Key) P2-14-1

    Uploaded by

    Rahim Rajani
    266 views2 pages
    This document presents a decision analysis with three alternatives - expand, move, or no change. It lists the potential outcomes (good, average, poor) and associated dollar values for each alternative. It also calculates the maximum choice, minimum choice, average choice, Hurwicz with an alpha of 0.4, and minimax values for each alternative to help evaluate the options. The best alternative based on each calculation is identified.

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    Solutions Manual.

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    Managerial Decision Modeling with Spreadsheets (Answer Key) P2-14-1

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    This document presents a decision analysis with three alternatives - expand, move, or no change. It lists the potential outcomes (good, average, poor) and associated dollar values for each alternative. It also calculates the maximum choice, minimum choice, average choice, Hurwicz with an alpha of 0.4, and minimax values for each alternative to help evaluate the options. The best alternative based on each calculation is identified.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    266 views2 pages

    Managerial Decision Modeling With Spreadsheets (Answer Key) P2-14-1

    Uploaded by

    Rahim Rajani
    This document presents a decision analysis with three alternatives - expand, move, or no change. It lists the potential outcomes (good, average, poor) and associated dollar values for each alternative. It also calculates the maximum choice, minimum choice, average choice, Hurwicz with an alpha of 0.4, and minimax values for each alternative to help evaluate the options. The best alternative based on each calculation is identified.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 2

    Problem 2-14

    PAYOFFS Outcomes (a) Maximax (b) Maximin (c) Equally Likely


    Alternatives Good Average Poor Maximum Choice Minimum Choice Average Choice
    Expand $76,000 $30,000 -$17,000 $76,000 -$17,000 $29,667
    Move $90,000 $41,000 -$28,000 $90,000 Best -$28,000 $34,333 Best
    No change $40,000 $15,000 $4,000 $40,000 $4,000 Best $19,667

    REGRET Outcomes (e) Minimax


    Alternatives Good Average Poor Maximum Choice
    Expand $14,000 $11,000 $21,000 $21,000 Best
    Move $0 $0 $32,000 $32,000
    No change $50,000 $26,000 $0 $50,000
    (d) Hurwicz
    Realism Choice
    $20,200 Best
    $19,200
    $18,400
    a= 0.4

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