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

To apply the Hurwicz criterion with alpha = 0.1, we calculate the weighted average of the maximum and minimum rewards for each action, with weights 0.1 and 0.9, respectively. Then we choose the action with the highest weighted average.

For action S1U1B11, the weighted average is 0.1(2) + 0.9(-8) = -7.6. 
For action S1U1B12, the weighted average is 0.1(14) + 0.9(0) = 1.4. 
For action S1U1B13, the weighted average is 0.1(25) + 0.9(0) = 2.5. 
For action S1U1B14, the weighted average is 0.1(41) + 0.9(0) = 4.1. 
For action S1U1B15, the weighted average is 0.1(52) + 0.9(0) = 5.2.

Therefore, the appropriate choice is D, which corresponds to action S1U1B14 with a weighted average of 4.1.

Consider the Following Decision Table with Rewards in $ Millions