For a particular maximization problem, the payoff for best decision alternative is $15.7 million while the payoff for one of the other

For a particular maximization problem, the payoff for best decision alternative is $15.7 million while the payoff for one of the other alternatives is $12.9 million. The regret associated with the alternate decision would be

a. $ 2.8 million. b. $ 28.6 million c. $ .129 million d. $ 15.7 million

Answers

$2.8million

Explanation:

The regret associated with the alternate decision would be calculated as the difference between the payoff for the best decision alternative which is $15.7 million and the payoff for one of the other alternatives which is $12.9 million. This will be:

= $15.7million - $12.9million

= $2.8million

The regret associated with the alternate decision is $2.8million.

a. $ 2.8 million

Explanation:

Calculation to determine what The regret associated with the alternate decision would be

Using this formula

Regret associate=Payoff for best decision alternative - Payoff for one of the other alternatives

Let plug in the formula

Regret associate= $15.7million - $12.9million

Regret associate= $2.8million

Therefore The regret associated with the alternate decision is $2.8million.

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