An insurance company is faced with taking one of the following 3 actions: a\: increase sales force by 10%; a2: maintain present sales force; a3: decrease sales force by 10%. Depending upon whether or not the economy is good mediocre the company would expect to lose the following amounts of money in each case:
(a) Determine if each action is admissible or inadmissible.
(b) The company believes that has the probability distribution Order the actions according to their Bayesian expected loss (equivalent to Bayes risk, here), and state the Bayes action.
(c) Order the actions according to the minimax principle and find the minimax nonrandomized action.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here