The Quality Control Manager for ENTA Inc -What Action Would You Choose According to Maximax Criterion

question 18

Short Answer

The quality control manager for ENTA Inc. must decide whether to accept (A1), further analyze (A2), or reject (A3) a lot of incoming material. Assume the following payoff table is available. Historical data indicates that there is 30% chance that the lot is poor quality (S1), 50 % chance that the lot is fair quality (S2), and 20% chance that the lot is good quality (S3).
$$\begin{array} { l r r r } & \mathbf { S } _ { \mathbf { 1 } } & \mathbf { S } _ { \mathbf { 2 } } & \mathbf { S } _ { \mathbf { 3 } } \\\mathbf { A } _ { \mathbf { 1 } } & 20 & 30 & 90 \\\mathbf { A } _ { \mathbf { 2 } } & 60 & 70 & 10 \\\mathbf { A } _ { \mathbf { 3 } } & 80 & 50 & 40\end{array}$$
-What action would you choose according to maximax criterion?

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Definitions:

Despair

A profound feeling of hopelessness, dejection, and loss of interest or pleasure in activities, often impeding normal functioning.

Sensory Restriction

a condition in which one or more senses are deliberately reduced or removed for a period of time, impacting perception and potentially leading to various cognitive and psychological effects.

Convulsive Behaviors

Involuntary, rapid movements or convulsions, often associated with neurological disorders or seizure activity.

Brain Functioning

The activities and processes that occur in the brain, enabling thought, memory, emotion, movement, and other aspects of cognition and behavior.