Energias
2. Decision making proces in condition of certainty
3. Decision making proces in condition of uncertainty
3. Decision Rules: A tool commonly used to display information needed for the decision process is a payoff matrix or decision table. The table shown below is an example of a payoff matrix. The A's stand for the alternative actions available to the decision maker. These actions represent the controllable variables in the system. The uncertain events or states of nature are represented by the S's. Each S has an associated probability of its occurance, denoted P. (However, the only decsion rule that makes use of the probabilities is the Laplace criterion.) The payoff is the numerical value associated with an action and a particular state of nature. This numerical value can represent monetary value, utility, or both. This type of table will be used to illustrate each type of decision rule.
|Actions\States |S1 (P=.25) |S2 (P=.25) |S3 (P=.25) |S4 (P=.25) |
|A1 |20 |60 |-60 |20 |
|A2 |0 |20 |-20 |20 |
|A3 |50 |-20 |-80 |20 |
Table 1: General Payoff Matrix style from Chankong [4]. This hypothetical example illustrates 3 different actions that can be taken, and 4 different possible, uncertain states of nature with their respective payoffs. i. Hurwicz criterion. This approach attempts to strike a balance between the maximax and maximin criteria. It suggests that the minimum and maximum of each strategy should be averaged using a and 1 - a as weights. a represents the index of pessimism and the alternative with the highest average is selected. The index a reflects the decision maker’s attitude towards