1. The director of career advising at Grand Valley Community College wants to us
ID: 399468 • Letter: 1
Question
1. The director of career advising at Grand Valley Community College wants to use decision analysis to provide information to help students decide which two-year degree program they should pursue. The director has set up the following payoff table for six of the most popular and successful degree programs at GVCC that shows the estimated five-year gross income ($) from each degree for four future economic conditions: Economic Conditions Degree Program Recession AverageGoodRobust 110,000 150,000190,000 240,000 140,000175,000 210,000225,000 95,000135,000230,000250,000 120,000180,000210,000270,000 85,000125,000180,000290,000 Computer Information125,000160,000200,000260,000 Graphic Design Nursin Real Estate Medical Technolo Culinary Technolo Technolo Determine the best degree program in terms of projected income, using the following decision criteria: a) Maximax b) Maximin c) Laplace d) Hurwicz (alpha-0.65)Explanation / Answer
Answer:
Maximax : This is defined as the option to select maximum of maximum . this means in the given scenario, the maximum will happen and we will get the maximum. So for this the maximum pay off in the robust category is Culinary Technology-The Robust is the best scenario for the career and it will provide the maximum pay off as $ 290,000
Maximax = Robust and $290,000 for the Culinary Technology degree program.
Maximin = This is the approach of selecting the maximum option in the worst case scenario i.e. in minimum scenario.
Rcession is the worst case scenario and the maximum here is $140000 for Nursing degree program
Maximin = Nursing Degree Program – Recession - $140,000
Laplace Strategy : We need to find the maximum of the row average as the best alternative for the Laplace strategy- Medical Technology is Best Alternative as per Laplace Strategy
Hurwicz Criteria : Select the alternative that is in the middle group of the extremes posted by the optimistic and pessimistic with alpha value.
Alpha = 0.65 …This means towards the optimistic alternative.
Degree Program Recession Average Good Robust Average of Rows Graphic Design 110,000 150,000 190,000 240,000 172,500 Nursing 140,000 175,000 210,000 225,000 187,500 Real estate 95,000 135,000 230,000 250,000 177,500 Medical Tech. 120,000 180,000 210,000 270,000 195,000 Maximum Best Alternative Culinary tech 85,000 125,000 180,000 290,000 170,000 Computer Inf.tech 125,000 160,000 200,000 260,000 186,250Related Questions
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