What is Laplace criterion? How does it differ from Hurwicz criterion?

      

What is Laplace criterion? How does it differ from Hurwicz criterion?

  

Answers


Wilfred
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


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