Consider the following decision table with rewards in $ millions. Using the Hurwicz criterion with alpha = 0.1,the appropriate choice would be ___. A)d₁ B)d₂ C)d₃ D)d₄ E)d₅

Question

Quizplus · Accepted Answer

Using the Hurwicz criterion with alpha = 0.1, we calculate the weighted average of the maximum and minimum rewards for each choice. 
For choice 1, the weighted average is (0.1 x 14) + (0.9 x 0) = 1.4 million.
For choice 2, the weighted average is (0.1 x 12) + (0.9 x 0) = 1.2 million.
For choice 3, the weighted average is (0.1 x 13) + (0.9 x 2) = 2.1 million.
For choice 4, the weighted average is (0.1 x 14) + (0.9 x 3) = 3.1 million.
For choice 5, the weighted average is (0.1 x 15) + (0.9 x 0) = 1.5 million.
Therefore, choice 4 has the highest weighted average and is the most appropriate choice.

Consider the Following Decision Table with Rewards in $ Millions