Question

Revenues Low (0.30) Medium (0.50) High (0.20) A 120,000 255,000 390,000 B 130,000 295,000 460,000 C 100,000 300,000 480,000 What is the best decision if you prefer the mini-max regret approach

Answer 1

Answer:

B

Explanation:

The computation is shown below:

Decision     S1         S2           S3

A             10000  45000   90000

                  (120,000 - 130,000) (295,000 - 255,000)  (480,000 - 390,000)

B                   0          5000     20000

C                30000       0              0

Based on the above table, the minimum value is for the decision B

So, the best decision should be taken for B only