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

question 43

Essay

A payoff table is given as $$\begin{array} { c | c c r } && { \text { State of Nature } } \\\text { Decision } & s_{1} & s_{2} & s_{3} \\\hline d_{1} & 250 & 750 & 500 \\d_{2} & 300 & -250 & 1200 \\d_{3} & 500 & 500 & 600\end{array}$$
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?

• 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?

---

Definitions:

Central Trait

A fundamental characteristic that shapes an individual's personality and is perceived as an integral part of their identity.

Personal Identity

Represents an individual's unique qualities, beliefs, and personality traits that distinguish them from others.

Personal Identity

An individual's sense of themselves, incorporating personal values, beliefs, and characteristics that distinguish them from others.

Relational

Pertaining to the connections and relationships between people, emphasizing how these connections influence behaviors and outcomes.