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Laplace criterion is a decision rule that expected payoff is calculated where each alternative is assigned equal probabilities. The best alternative is that with the highest expected payoff. Hurwicz criterion on the other hand is a decision rule where there is a weighted average of the best and worst payoffs of each alternative. Laplace criterion is different from Hurwicz criterion because of the equal probabilities and the other uses an average depending on the decision maker?s view of risk
Wilfykil answered the question on February 20, 2019 at 10:46
- A fruit/juice kiosk along Lusaka road, VegFresh kiosk has come up with the following formulae of making natural juice for its industrial area customers(Solved)
A fruit/juice kiosk along Lusaka road, VegFresh kiosk has come up with the following formulae of making natural juice for its industrial area customers
- 5 litres lemonade: 2 dozen lemon, 2 kg of sugar, 2 ounces of citric acid and water
- 5 litres grapefruit: 11/2 kg grape fruit, 11/2 kg of sugar, 1 ounces of citric acid and water
- 5 litres orangeade: 11/2 dozen of oranges, 11/2 kg of sugar, 1 ounces of citric acid and water
The selling prices of the fruit juices per every 5 litre are:
Lemonade: Sh. 37.50
Grapefruit: Sh. 40.00
Orangeade: Sh. 42.50
During the cold weather season (May 2002) VegFresh kiosk had in stock 2,500 dozen lemons,2,000 kg grape fruit, 750 dozen oranges, 5,000 kg of sugar and 3,000 ounces of citric acid
Required:
i) Formulate the linear programming problem
ii) Formulate the dual of this primal
Date posted: February 20, 2019. Answers (1)
- Define a dual problem in relation to the primal problem(Solved)
Define a dual problem in relation to the primal problem
Date posted: February 20, 2019. Answers (1)
- Given the following data of production of vehicles by a local car assembly KMA Ltd. Determine the deseasonalised data and using the forecasting relationship forecast...(Solved)
Given the following data of production of vehicles by a local car assembly KMA Ltd. Determine the deseasonalised data and using the forecasting relationship forecast the production in May 2003.
Date posted: February 20, 2019. Answers (1)
- What are the steps in time-series decomposition?(Solved)
What are the steps in time-series decomposition?
Date posted: February 20, 2019. Answers (1)
- Forecasting is the attempt to predict the future by using qualitative or quantitative means. Discuss the qualitative and QUANTITATIVE ANALYSIS available for managers in predicting...(Solved)
Forecasting is the attempt to predict the future by using qualitative or quantitative means. Discuss the qualitative and QUANTITATIVE ANALYSIS available for managers in predicting the future.
Date posted: February 20, 2019. Answers (1)
- i)Explain the meaning of a random variable
ii) Zebro Match Manufacturers finds that 5% of the matches in a box are defective. Determine the probability that...(Solved)
i)Explain the meaning of a random variable
ii) Zebro Match Manufacturers finds that 5% of the matches in a box are defective. Determine the probability that out of a box containing 50 match sticks:
a) None will be defective
b) If the guarantee is not more than 4 will be defective, what is the probability that the box wil meet guarantee quality?
Date posted: February 20, 2019. Answers (1)
- What is a Venn diagram? How can it be used to determine probability of a given event?(Solved)
What is a Venn diagram? How can it be used to determine probability of a given event?
Date posted: February 20, 2019. Answers (1)
- In a base period, salaries comprise 50% of selling price of product, materials and overheads 40%, and profits 10%. If salary structure rose by 20%...(Solved)
In a base period, salaries comprise 50% of selling price of product, materials and overheads 40%, and profits 10%. If salary structure rose by 20% and materials and overhead costs rose by 10% from base period. What must have been the percentage increase in selling price if profits remained 10% of selling price?
Date posted: February 20, 2019. Answers (1)
- The price index for 2001 with base 1985=100 for the listed goods is(Solved)
The price index for 2001 with base 1985=100 for the listed goods is
Find the Arithmetic mean and geometric mean of these three indices.
Date posted: February 20, 2019. Answers (1)
- Write short notes on the following:
i) Price relatives.
ii) Fixed base method.
iii) Chain base method.
iv) Weighted index number.
v) Quantity index number.(Solved)
Write short notes on the following:
i) Price relatives.
ii) Fixed base method.
iii) Chain base method.
iv) Weighted index number.
v) Quantity index number.
Date posted: February 20, 2019. Answers (1)
- In brand switching between different toothpastes named Closed-up CU, Cols-gate CG and Aquas-fresh AF, the state transition matrix below is obtained for a particular month.(Solved)
In brand switching between different toothpastes named Closed-up CU, Cols-gate CG and Aquas-fresh AF, the state transition matrix below is obtained for a particular month.
Required:
i) If the market share for the different toothpastes were 0.4, 0.3 and 0.3 for CU, CG and AF for January 2002, what will be the market share in February 2002 and March 2002?
ii) What is the market share equilibrium situation?
Date posted: February 20, 2019. Answers (1)
- Define the following:
i) Markov process.
ii) Cyclic chain.
iii) Absorbing state.
iv) State transition matrix.
v) Steady state(Solved)
Define the following:
i) Markov process.
ii) Cyclic chain.
iii) Absorbing state.
iv) State transition matrix.
v) Steady state
Date posted: February 20, 2019. Answers (1)
- Define the terms systematic, stratified, multistage, cluster and quota sampling as used in statistical inference.(Solved)
Define the terms systematic, stratified, multistage, cluster and quota sampling as used in statistical inference.
Date posted: February 20, 2019. Answers (1)
- Caterpillar Company Ltd. produces generators and drilling engines. The revenue function that describes total revenue for sales in a particular quarter of these engines is...(Solved)
Caterpillar Company Ltd. produces generators and drilling engines. The revenue function that describes total revenue for sales in a particular quarter of these engines is given by:
R = 8x + 5y + 2xy – x2 – 2y2 + 20
Where:
x – number of generator engines in thousands.
y – number of drilling engines in thousands.
At what quantities of x and y is revenue maximised in a particular quarter
Date posted: February 20, 2019. Answers (1)
- Kiko Manufacturing Ltd. wants to take a decision of introducing a new soap Kikope. The cost for introducing Kikope (Initial advertising, promotion and fixed cost...(Solved)
Kiko Manufacturing Ltd. wants to take a decision of introducing a new soap Kikope. The cost for introducing Kikope (Initial advertising, promotion and fixed cost for one year of production) is estimated at Ksh.30,000. The variable cost per bar of soap is Ksh.30 and the expected selling price is Ksh.50.
Required:
Draw the cost, revenue and profit functions and from it:
i) Determine the break-even level of production.
ii) Determine the profit on the sale of 2,500 soap bars.
Date posted: February 20, 2019. Answers (1)
- Vick Press Ltd is planning to expanding into offering security systems in people?s homes scared
of security.The following are activities and associated costs for the expansion:(Solved)
Vick Press Ltd is planning to expanding into offering security systems in people‟s homes scared of security.The following are activities and associated costs for the expansion:
Required:
i) Determine the critical path.
ii) Determine the minimum time and minimum cost for the networks.
iii) Given that, for every delay beyond 40th week, there is share of Sh.1,000 per week loss of profit. Is it advisable to crash the project from 51 to 45 weeks? Why?
Date posted: February 20, 2019. Answers (1)
- Peter and Ngomongo are second hand dealers of electronic equipment and shoes along Baricho road.
Due to hard economic times and restriction by City Council, sales...(Solved)
Peter and Ngomongo are second hand dealers of electronic equipment and shoes along Baricho road. Due to hard economic times and restriction by City Council, sales have been decreasing. Each of them came up with strategies to expand into the other business (they have monopoly now). Each of them knows what the other is considering thus influences each others decision. Peter had the following matrix of profit per day.
Required:
i) Interpret the matrix.
ii) Solve the game to determine the average winning (loss) each cousin would have
Date posted: February 20, 2019. Answers (1)
- Define the following as used in game theory:
i) N – person game.
ii) Saddle point.
iii) Strategy.
iv) Rules of dominance(Solved)
Define the following as used in game theory:
i) N – person game.
ii) Saddle point.
iii) Strategy.
iv) Rules of dominance
Date posted: February 20, 2019. Answers (1)
- Zadock ltd. manufactures various kinds of furniture namely ordinary chairs, baby cots, and executive chairs. All the products use raw material (wood), machine time (lathe)...(Solved)
Zadock ltd. manufactures various kinds of furniture namely ordinary chairs, baby cots, and executive chairs. All the products use raw material (wood), machine time (lathe) and manual labour (technicians). The requirements for the furniture are summarised as below.
Required:
i) Formulate the linear programming problem into standard form for input to the computer spreadsheet
ii) What are the units of each kind of furniture to be produced to maximise profits. What is the maximum profit?
iii) Is there any resource that is not used up? For the used up resource if any, how much would you pay for one additional unit.
Date posted: February 20, 2019. Answers (1)
- What are the underlying assumptions in linear programming?(Solved)
What are the underlying assumptions in linear programming?
Date posted: February 20, 2019. Answers (1)