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

question 2

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 maximin criterion?

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Definitions:

Defamation

Defamation is the act of communication false statements about a person, which injure that person’s reputation.

Special Damages

Actual damages that would not necessarily but because of special circumstances do in fact flow from an injury.

Oral

Pertaining to words spoken out loud, as opposed to written or sign language; often used in the context of agreements or contracts.

Malicious Prosecution

A legal action against someone who has wrongfully instituted criminal or civil proceedings against another person with malicious intent and without probable cause.