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MAST30022 Decision Making - Assignment 3: Pareto order

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AustraliaUniversity of MelbourneMAST30022Decision MakingPareto order

MAST30022 Decision Making Assignment 3 CourseNana.COM

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1. (a) Let θ be a binary relation on a set A which is not necessarily transitive.
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Define a binary relation θon A as follows: for any a,b A, b if and only if there exists a sequence a1, a2, . . . , ak A, where k 2 is an integer (which relies onaandb),suchthata=a1,b=ak andaiθai+1 foralli=1,2,...,k1. CourseNana.COM

θis called the transitive closure of θ. Prove that θis a transitive relation on A. CourseNana.COM

 (b) Let (T, r) be a rooted tree. Denote the set of nodes of (T, r) by V . CourseNana.COM

Let θ be the binary relation defined by
θ = {(a,b)|a,bV, aisaparentofb}. CourseNana.COM

(i) Show that θ is not transitive. CourseNana.COM

(ii) Let θbe the transitive closure of θ and a, b V . Describe what relation holds between a and b if b transitivity, reflexivity, comparability, symmetry, asymmetry, antisymmety. CourseNana.COM

(ii) Which property(ies) are gained/lost if “even” is replaced by “odd” in θ, and if ̄ CourseNana.COM

Carefully explain your answers by providing proofs or counterexamples. Answer (a)(i) in the box below. CourseNana.COM


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2. Define the two binary relations θ and θ on Z × Z by (a) θ = {(a, b) : a1a2 b1b2 is even}, CourseNana.COM

(b) θ={(a,b):a1 >b1 ora2 >b2}.
(i) Verify for each of the two relations which of the following properties are satisfied: CourseNana.COM

a1 >b1 ora2 >b2”isreplacedby“a1 b1 ora2 b2”inθ? CourseNana.COM

Continue your answer to (a)(i) in the box below. CourseNana.COM

Answer (a)(ii) in the box below. CourseNana.COM

Answer (b)(i) in the box below. CourseNana.COM

Continue your answer to (b)(i) in the box below. CourseNana.COM

Answer (b)(ii) in the box below. CourseNana.COM


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3. Let A = {(3,2,2),(3,1,1),(4,2,1),(3,1,1),(3,1,1),(4,2,1),(1,1,1)}. CourseNana.COM

(a) List the lexicographic order of A, and find the greatest and least elements of A. CourseNana.COM

(b) For the Pareto order on A, use the Boolean matrix representation to find the Pareto-maximal and Pareto-minimal element sets Pmax(A) and Pmin(A), and the Pareto greatest and least elements (if any) of A. CourseNana.COM

(c) Let f : R3 R3 be defined by CourseNana.COM

f(x)=(x1 +x2,x1 +x3,x2 +x3) 3 CourseNana.COM

for all x = (x1,x2,x3)R.
Denote the lexicographic order on
R3 by L. CourseNana.COM

You may freely use the results from the lecture that L is reflexive, transitive, antisymmetric, and comparable. CourseNana.COM

Define θL by CourseNana.COM

θL ={(a,b)|a,bA,f(a)Lf(b)}. CourseNana.COM

(i) Determine whether θL satisfies the properties of reflexivity, transitivity, anti- symmetry, and comparability. CourseNana.COM

Continue your answer to (c)(i) in the box below. CourseNana.COM

(ii) Determine all maximal/minimal elements and greatest/least elements in A with respect to θ . CourseNana.COM


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4. For the upcoming planting season, Farmer Q has four options: CourseNana.COM

a1: Plant corn;
a2: Plant wheat;
a3: Plant soybeans;
a4: Use the land for grazing. CourseNana.COM

The profits associated with these actions are influenced by the amount of rainfall, which could be one of four states: CourseNana.COM

θ1: Heavy rainfall;
θ2: Moderate rainfall; θ3: Light rainfall;
θ4: Drought season. CourseNana.COM

The profit matrix in (thousands of dollars) is estimated as CourseNana.COM

θ1 θ2 θ3 θ4 CourseNana.COM

a1             20 60 30 5 CourseNana.COM

a2             40 50 35 0 CourseNana.COM

a3             50 100 45 10 CourseNana.COM

a4             12 15 15 10 CourseNana.COM

(a) Which course of action should the farmer take if he uses CourseNana.COM

(i) Wald’s maximin criterion; CourseNana.COM

(ii) Hurwicz’s maximax criterion; CourseNana.COM

(iii) Savage’s minimax regret criterion; CourseNana.COM

(iv) Laplace’s criterion? CourseNana.COM

Continue your answer to (a) in the box below. CourseNana.COM

(b) For each α [0,1] determine the action(s) that is/are imposed by Hurwicz’s α-criterion. CourseNana.COM

Continue your answer to (b) in the box below. CourseNana.COM

 (c) Use the decision table above to show that Wald’s minimax criterion does not satisfy the axiom of independence of addition of a constant to a column. CourseNana.COM

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