Use Graphical Sensitivity Analysis to Determine the Range of Values

question 28

Essay

Use graphical sensitivity analysis to determine the range of values of the probability of state of nature s₁ over which each of the decision alternatives has its largest expected value. $$\begin{array} { c | r r } && { \text { State of Nature } } \\\text { Decision } & s _ { 1 } & s _ { 2 } \\\hline d _ { 1 } & 8 & 10 \\d _ { 2 } & 4 & 16 \\d _ { 3 } & 10 & 0\end{array}$$

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Definitions:

Accommodation

In psychology, the process by which individuals adjust their schemas or ways of thinking to incorporate new information.

Abstract Thinking

The capacity to conceptualize about entities, principles, and notions absent in the physical realm.

Logical Thinking

The process of reasoning consistently in a structured, orderly, and rational manner to come to a conclusion or solve a problem.

Egocentrism

A cognitive characteristic where an individual has difficulty understanding or assuming any perspective other than their own.