Consider the Following Decision Table with Rewards in $ Millions

question 76

Multiple Choice

Consider the following decision table with rewards in $ millions. $\begin{array}{r}\text { State of Nature }\\(\begin{array}{|c|c|c|c|}\hline\text { Decision Alternatives } & S_{1} & S_{2} & S_{3} \\\hline d_{1} & -1 & 2 & 8 \\\hline d_{2} & -3 &6.5 & 5 \\\hline d_{3} & -0.5 & 0.75 & 1 \\\hline d_{4} & 0 & 0 & 0 \\\hline d_{5} & -1 & -1 & -1\\\hline\end{array}\end{array}$
If you are using Hurwicz and decide d₂, then $\alpha$ is ______.

• A)undetermined; there is not enough information to find the answer
• B)unfeasible; there is no value of \(\alpha\)that would make you choose d₂
• C)larger than 0.4
• D)less than 0.4
• E)less than 0.67

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