00:01
Hello students, in this question first of all we have to draw the decision tree.
00:02
So here the decision tree is like this.
00:05
Decision tree.
00:07
So we have d1 and d2, d1 and d2 and after that s1, s2 and s3.
00:18
So the values are 150, 180, 130 and s2 values are s1, s2 and s3.
00:27
Here s1 value is 200, 160 and 110.
00:30
And now we have to solve this by using the min -max approach.
00:39
So here decision d1, decision we have d1 and d2 and max profit.
00:45
So here the max profit is d1 180, d2 200, minimum profit here in d1 we have 130 and here that is 110.
00:54
And after that optimization, optimistic approach and convergent, conservative approach we have.
01:04
So in optimistic approach select d1, in conservative approach select d2.
01:16
So opportunity table, regret table, so here it is equal to d1, d2 and s1, s2, s3, 0, 0 and 20.
01:29
Here also 20, 0, 0.
01:31
200 minus 180 is 20 and here 130 minus 110 is 20.
01:35
So here the maximum regret is equal to maximum regret equal to 20 for d1 and for d2 also.
01:41
The maximum regret equal to 20.
01:44
Now we have to find out the probability values.
01:47
So here the p of s1, p of s2 and p of s3.
01:50
Here p of s1 is equal to 0 .93 and p of s2 is equal to 0 .05 and p of s3 equal to 0 .02.
01:57
Now the expected value for d1 is equal to summation j equal to 1 to n, sj, vij.
02:03
So it is equal to 0 .93 into 150 plus 0 .05 into 180 plus 0 .02 into 130.
02:12
So it is equal to 139 .5 plus 9 plus 2 .6.
02:15
It is equal to 151 .1...