Consider the Following Decision Table with Rewards in $ Millions

question 31

Multiple Choice

Consider the following decision table with rewards in $ millions. $\begin{array}{r}\text { State of Nature }\\\begin{array}{|c|c|c|c|}\hline \text { Decision Alternatives } & S_{1} & S_{2} & S_{3} \\\hline d_{1} & -1 & 2 & 8 \\\hline d_{2} & -3 & 7 & 5 \\\hline d_{3} & -0.5 & 0.75 & 1 \\\hline d_{4} & 0 & 0 & 0 \\\hline d_{5} & -1 & -1 & -1\\\hline\end{array}\end{array}$
Using the maximin criterion, the appropriate choice would be __________.

• A)d₁
• B)d₂
• C)d₃
• D)d₄
• E)d₅

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Definitions:

Value Image

A conceptual representation that captures the essential qualities or values associated with an object, idea, or person.

Confirmation Bias

The tendency to interpret new evidence as confirmation of one's existing beliefs or theories.

Frames

A structure for organizing or enclosing something, often used metaphorically to describe conceptual boundaries or perspectives.

Preferences

Individual likings or choices among various options or alternatives.