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A Payoff Table Is Given As AWhat Decision Should Be Made by the Optimistic Decision Maker

question 29

Essay

A payoff table is given as  State of Nature  Decision s1 s2 s3d11086d214152d3789\begin{array} { c | r r r } & & { \text { State of Nature } } \\\text { Decision } & \mathrm { s } _ { 1 } & \mathrm {~s} _ { 2 } & \mathrm {~s} _ { 3 } \\\hline d_{1} & 10 & 8 & 6 \\d_{2} & 14 & 15 & 2 \\d_{3} & 7 & 8 & 9\end{array}
a.What decision should be made by the optimistic decision maker?
b.What decision should be made by the conservative decision maker?
c.What decision should be made under minimax regret?
d.If the probabilities of s1, s2, and s3 are .2, .4, and .4, respectively, then what decision should be made under expected value?
e.What is the EVPI?

Definitions:

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