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Answer: Decision Analysis First: Expected Monetary Value The Expected Monitory Value (EMV) for alternative 1, 2, and 3 are -13,000, 10,000 and 0 respectively. Equally likely (Laplace),Maximax and Maximin The maximum pay-off under a Laplace is 5000. The maximax from the pay-off table is 30,000. The maximin from the pay-off table is 0. Criterion of Realism (Hurwicz), where Hurwicz coefficient =0.70 The maximum of the criteri...Read More
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