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Hello.
Please help me with this problem. Contribution table:Venue: A B C D
Demand:
Low $0 $200000 $300000 $450000
Medium $330000 $110000 $0 $150000
High $810000 $590000 $480000 $0Why in the problem solving it is said:
Max regret
A $810000
B $590000
C $480000
D $450000I think
max regret:
A $450000
B $250000
C $330000
D $810000The figures you have given are the contributions, and therefore to use the minimax criterion, the first thing you need to do is rewrite the table in terms of the regrets.
The regret table is
Low 450,000 200,000 150,000 0
Medium 0 220,000 330,000 180,000
High 0 220,000 330,000 810,000Therefore your answer is correct 🙂
Are you sure it was asking for the minimax regret criteria (and not the minimax criteria), and that the table given was the contribution table and not already the regret table?
If so, then the printed answer is rubbish!!
It is exam Kit and table gives contributions. Thank you very much for your help.
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