Payoff tables + Risk Preference + Maximax, Maximin & Minimax Regret [Eng]

In this lecture following topics are discussed:

+ 0:00 Intro to types of decision analysis techniques to manage risk and uncertainty
[Probability based and non probability based decision making techniques]
Pros and Cons of these techniques over each other

+ 0:40 Intro to Payoff tables (also called decision tables)
1:20 Payoff Tables Explained; Definition, How it helps in with scenarios and alternatives
2:00 Types of Scenarios; Best Possible, Worst Possible, Most likely
2:15 Format of payoff table (decision table)

+ 3:25 Understanding Risk preference i.e. individual's attitude towards risk and why its important:
- risk taker [optimistic]
- risk avoider [pessimistic or conservative]
- risk neutral

+ 4:25 Decision rules based on risk preference instead of probability (non probability based):
Maximax rule as followed by the optimist or risk taker
Maximin as followed by the pessimist or risk avoider
Minimax regret rule as followed by the risk neutral person.

+ 5:14 Maximax rule explained; understanding what it is and how it works with examples

+6:37 Maximin rule explained; understanding in detail with examples

+7:53 Minimax regret rule explained with examples, what it is and how to determine and decide.
Minimax regret table; what it is and how the figures are calculated.

[muhammadyasin]

Thanks for Providing simple way to understand this concept

[abhishekchaturvedi]

one of the best videos is what exactly I am looking for

[mohitkr]

Thanks, Cleared all my doubts through your video.

[moonhanaa]

I am so confused with this topic before my exam and this video saves me! Thank you for your sharing.

[ozgin]

Thank you so much, I was doing my homework and still can’t figure it out but after I watch this video I can understand it that my lecturer swap position of alternatives .I was fool for like 5 hours haha, thank you again!

[bhavnarajput]

Very well understood... thankuuu so much

[dav]

this was so helpful, I struggled with understanding it till now

[mahmudulhasan]

I have found a solution in cima -Kaplan for p1 where regret is calculated along alternative options, not along scenarios - I'm confused

[priscillazizinga]

please what happens if the worse possible outcomes have equal numbers?

[olaoluwamann]

What happens when we have more than three scenarios? Do we strike one scenario out, or compute all scenarios?

[mamushgezahign]

Woooow really really I wanna say tnx from bottom of ma heart tnx all Indian brilliant love Indian!

[joshaerikamascardo]

Hello, what if you computed all the 3 approach (optimist, conservative, minimax regret) and among all the results, you need to choose which is the best decision.
Example:
Optimist: d3 = 120
Conservative: d4 = 20
Minimax regret: d4 = 100


what could be the best decision?

[muhammadumarnazirchishti]

kindly please make video on value of perfect and imperfect information and decision trees

[raghuvarma]

sir i have a doubt that i regret table you told that the minimum should be selected but the minimum is -570 please explain

[darkprince]

Thnx sir It means a lot to understand ths topics .. Btw where can i found the counterpart ?

[seyhanreyhan]

Thank you soooo soooo much :) your are perfect