Question: 1. A decision maker has prepared the following payoff table Alternative High Low Buy 100 5 rent 80 45 Lease 50 40 Prior Probability 0.8

1. A decision maker has prepared the following payoff table

Alternative High Low
Buy 100 5
rent 80 45
Lease 50 40
Prior Probability 0.8 0.2

Using Baye's Decision Rule, what is the best decision and the expected payoff? (Round your answer to 1 Decimal place)

Best decision
Payoff

2. A decision maker has prepared the following payoff table

Alternative High Low
Buy 95 0
rent 80 40
Lease 60 35

Using the Maximin criterion, what is the best decision and the expected payoff?

Best decision
Payoff

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