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

question 42

Essay

A payoff table is given as $$\begin{array} { c | r r r } & & { \text { State of Nature } } \\\text { Decision } & \mathrm { s } _ { 1 } & \mathrm {~s} _ { 2 } & \mathrm {~s} _ { 3 } \\\hline d_{1} & 250 & 750 & 500 \\d_{2} & 300 & -250 & 1200 \\d_{3} & 500 & 500 & 600\end{array}$$
a.What choice should be made by the optimistic decision maker?
b.What choice should be made by the conservative decision maker?
c.What decision should be made under minimax regret?
d.If the probabilities of d₁, d₂, and d₃ are .2, .5, and .3, respectively, then what choice should be made under expected value?
e.What is the EVPI?

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