1. Suppose that a decision maker faced with three decision alternatives (d1,d2) and d3, and three states of nature (51,52 and ) develops the following profit payoff table: State of Nature S_{1} Decision Alternatives d_{1} 455 315 254 d_{2} 300 350 350 d_{3} 285 542 651 nothing is known about the probabilities of the two states of nature , what is the recommended decision using : a. Optimistic approach b. Conservative approach minimax regret approach

2. S_{1} For Question 1, suppose that the decision maker believes that the probability of state of nature 0.35, the probability of state of nature sz is 0.45 and the probability of state of nature 0.2. Complete the following : a. Draw a decision Tree. b. Use the expected value approach to determine an optimal decision