Problem Solutions

							                              Homework 7
                            DECISION MODELS
Prob. #                 Concepts Covered                   Level of                     Notes
                                                           Difficulty
  6.1     Decision Making Under Uncertainty -- maximax,        1
          maximin, minimax regret and principle of
          insufficient reason criteria
  6.2     Expected Value Criterion, EVPI                       1
  6.3     Decision Making Under Uncertainty --                 1
          Maximax, Maximin, and Minimax Regret
          Criteria
  6.4     Expected Value Criterion, EVPI                       2
  6.5     Bayesian Probability Revision, EVSI                  4
  6.9     Constructing Payoff Tables, Minimax Regret and       6
          Expected Value Criterion
 6.22     Constructing Payoff Tables                           4
 6.23     Expected Value Criterion, EVPI                       2        Part b. of this problem is looking for
                                                                        the EVPI.
 6.25     Minimax Regret, Maximin, and Expected Value          3
          Criteria




                                               6-1