Question: The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. State of Nature Decision Alternative

The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. State of Nature Decision Alternative s1 s2 s3 d1 250 100 25 d2 100 100 75

a. Construct a decision tree for this problem.

b. If the decision maker knows nothing about the probabilities of the three states of nature, what is the recommended decision using the optimistic, conservative and minimax regret approaches?

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