The Table Shows Both Prospective Profits and Losses for a Company

question 10

Essay

The table shows both prospective profits and losses for a company, depending on what decision is made and what state of nature occurs. Use the information to determine what the company should do. $$\begin{array} { c | r r r } & & { \text { State of Nature } } \\\text { Decision } & s _ { 1 } & s _ { 2 } & s _ { 3 } \\\hline d _ { 1 } & 30 & 80 & - 30 \\d _ { 2 } & 100 & 30 & - 40 \\d _ { 3 } & - 80 & - 10 & 120 \\d _ { 4 } & 20 & 20 & 20\end{array}$$
a.if an optimistic strategy is used.
b.if a conservative strategy is used.
c.if minimax regret is the strategy.

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