Consider the Decision Analysis Problem with States of Nature S_i

question 17

Short Answer

Consider the decision analysis problem with states of nature S_i, decision alternatives A_j, and the following payoff table: $\begin{array}{llll}&\mathbf{S 1} & \text { S2 } & \text { S3 } & \text { S4 } \\A1&55 & 51 & 50 & 38 \\A2&39 & 42 & 42 & 48 \\A3&45 & 59 & 57 & 35\end{array}$ What is the preferred alternative when using the:
A.maximin criterion?
B.maximax criterion?
C.minimax regret criterion?
D.principle of insufficient reason?

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Definitions:

Defense Department

A sector of a government responsible for implementing defense policy, managing the armed forces, and ensuring national security.

Marshall Plan

An American initiative passed in 1948 to aid Western Europe, in which the United States gave over $12 billion in economic assistance to help rebuild Western European economies after the end of World War II.

Capitalist

An individual who possesses capital, particularly financial assets, and engages in the investment and management of these assets with the aim of generating profit.