A student wanted to find out the optimal strategy to study for a Business Statis

Question

A student wanted to find out the optimal strategy to study for a Business Statistics test going to be held next day which could be MCQ type, one word answer type or long answer type. From the information that he gathered from students who had earlier taken the test, he constructed the following payoff (scores) table based on the mean amount of time he needed to study for the test in one day and the type of the test. TypeMCQ type One WordLong Answer Time 4 Answer 12 10 15 20 12 18 Explain the optimal strategy chosen using the following criteria a. Maximax b. Minimax c. Maximin Regret d. Hurwicz Criterion e. Laplace Criterion. (2 marks) (2 marks) (2 marks) (2 marks) (2 marks)

Explanation / Answer

Answer

Part (a)

Maximax:

As per given data

Maximax Criteria
Time MCQ type    One word Long answer   Maximum
4 10 5 8 10
8 12. 10. 15 15
16 20 12 18 20

Maximax= 20

Decision : 16

Part (b)

Minimax:

From the given data

Time MCQ type One word Long answer Maximum
4 10 5 8 10
8 12 10 15 15
16 20. 12 18 20

Minimax = 10

Decision : 4

Part (c)

Regret

Time MCQ One word Long answer MCQ type One word Long Max

Answer
4 10 5 8 0 5. 2. 5
8 12 10 15 3 5 0 5
16 20 12 18 0 8 2 8

Minimum value = 5

Therefore ,Decision: 4 and 8

Note:- For other parts frame a separate question.

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