
Chapter 19
818
Using this formula, the Hurwicz criterion value is obtained for each strategy and the strategy with
the maximum value is selected. Suppose in the curd pack example, a decision maker has selected
the coef cient of optimism as
α
= 0.7. The Hurwicz criterion values for different acts can be
obtained as indicated in Table 19.6. So, according to the Hurwicz criterion, a decision maker will
select an act (strategy) A
5
which gives the maximum Hurwicz criterion value.
TABLE 19.6
Hurwicz criterion values for different acts (for the curd pack example)
Act Maximum value Minimum value Hurwicz criterion values
(A
1
) 0 0
0.7 × 0 + 0.3 × 0 = 0
(A