RMI-2302 Lecture Notes - Lecture 3: Normal-Form Game, Likelihood Principle, Maximum Likelihood Estimation
14 Feb 2016
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Rmi 2302 exam 1 study guide. Organizational decision making decision theory used to determine optimal strategies where a decision-maker is faced with several alternatives and uncertain, or risky, pattern of future events. Identification of carious possible outcomes (no control over the outcomes). Identification of all the courses of action (control over the actions). Determination of the pay-off function (combinations of the acts and outcomes). Choosing from among various alternatives on the basis of some criterion. Identify courses of action in the face of possible events. 1: develop pay-off and regret tables, choose a course of action in accordance with some principle. Example: if a bookstore sells a particular book for , it purchases the book for per copy and the unsold books can be disposed of for each. According to past experience, the annual demand for this book is between 18 and 23 copies.
