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    BBM 351 Q1 (A) I) - Rules of The Play

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    Apete Julius Luambo
    This document contains two questions regarding game theory and business decision making: 1. The first question discusses the rules and strategies in game theory. It defines rules of a play, dominance rules, plain vs optimal strategies, and uses a payoff matrix to find the value of the game using maximin and minimax strategies. 2. The second question discusses different types of business decisions. It defines policy vs operating decisions, organizational vs personal decisions, programmed vs non-programmed decisions, and operative decisions made by middle management. 3. The document provides examples and calculations to illustrate the concepts discussed.

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    BBM 351 Q1 (A) I) - Rules of The Play

    Uploaded by

    Apete Julius Luambo
    50 views2 pages
    This document contains two questions regarding game theory and business decision making: 1. The first question discusses the rules and strategies in game theory. It defines rules of a play, dominance rules, plain vs optimal strategies, and uses a payoff matrix to find the value of the game using maximin and minimax strategies. 2. The second question discusses different types of business decisions. It defines policy vs operating decisions, organizational vs personal decisions, programmed vs non-programmed decisions, and operative decisions made by middle management. 3. The document provides examples and calculations to illustrate the concepts discussed.

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    BBM assignment

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    This document contains two questions regarding game theory and business decision making: 1. The first question discusses the rules and strategies in game theory. It defines rules of a play, dominance rules, plain vs optimal strategies, and uses a payoff matrix to find the value of the game using maximin and minimax strategies. 2. The second question discusses different types of business decisions. It defines policy vs operating decisions, organizational vs personal decisions, programmed vs non-programmed decisions, and operative decisions made by middle management. 3. The document provides examples and calculations to illustrate the concepts discussed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    50 views2 pages

    BBM 351 Q1 (A) I) - Rules of The Play

    Uploaded by

    Apete Julius Luambo
    This document contains two questions regarding game theory and business decision making: 1. The first question discusses the rules and strategies in game theory. It defines rules of a play, dominance rules, plain vs optimal strategies, and uses a payoff matrix to find the value of the game using maximin and minimax strategies. 2. The second question discusses different types of business decisions. It defines policy vs operating decisions, organizational vs personal decisions, programmed vs non-programmed decisions, and operative decisions made by middle management. 3. The document provides examples and calculations to illustrate the concepts discussed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    BBM 351

    Q1
    (a)
    I). Rules of the play. may be defined as statements and directions that must be followed within a
    given game in order for it to be played correctly. They are often fixed as rulesets created by the
    game designer and agreed upon by the players.
    (ii) rules of dominance. A dominance rule is a rule established in order to reduce the solution
    space of a problem by adding new constraints to it, either in a procedure that aims to reduce the
    domains of variables, or directly in building interesting solutions.
    (iii) plain strategy is one that does not provide optimal pay off in the matrix of the players
    strategies
    (iv) optimal strategy is a strategy that provides the best payoff for a player in a game.
    (b)
    Player A Player B strategies Row
    strategies minimum
    b1 b2 b3 b4 b5
    a1 6 3 -1 0 -3 -3
    a2 3 2 -4 2 -1 -4
    Column 6 3 -1 2 -1
    maximu
    m

    (I) yes, it is possible to find the value of the game. Using maximin, the value of the game can be
    determined by getting the maximin column difference and the using the minimax we get the row
    with the minimum difference, we proceed to determine th saddle point where they meet and
    hence the value of the game.
    (ii)
    Player A Player B strategies Row
    strategies minimum
    b1 b2 b3 b4 b5
    a1 6 3 -1 0 -3 -3
    a2 3 2 -4 2 -1 -4
    Column 6 3 -1 2 -1
    maximu
    m

    Column B1 has maximum value, with minimum of 3 giving player B maximum strategy at this
    point, while row A2 has minimum value of –4 and maximum value of 3 giving player A
    maximum strategy at this point. A saddle point exists at the node A2,B1. This is the value of the
    game that is = 3.
    Q2 types of decision making in business
    (I) Policy decisions are of vital importance and are taken by the top management. They affect the
    entire enterprise. But operating decisions are taken by the lower management in order to put into
    action the policy decisions. For instance, the bonus issue is a policy matter which is to be
    decided by the top management.
    (ii) organization and personal decisions. Organizational decisions are those which a manager
    takes in his official capacity. Such decisions can be delegated. But personal decisions, which
    relate to the manager as an individual and not as a member of the organization, cannot be
    delegated.
    (iii) program and non-program decisions. The programmed decisions are of a routine and
    repetitive nature which are to be dealt with according to specific procedures. But the non-
    programmed decisions arise because of unstructured problems.
    (iv) operative decisions. A decision which relates to day-to-day operation of an organization is
    known as operative decision. This type of decision is taken by middle level management people
    normally. The reason is that they are working at supervisory level and have a good knowledge of
    the operations.
    (b)
    Daily sale 0 100 200 300 400 1000
    Number of 10 60 60 50 20 200
    days

    Expected sales
    Daily sale 0 100 200 300 400 1000
    Number of 10 60 60 50 20 200
    days

    Pay-off table
    25 0 100 200 300 400 1000
    ,50
    ,10
    Expected profit
    (50*1000-)(25*1000)+(10*1000) =30000
    Q3

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