Question: 15.2-5.* Consider a decision analysis problem whose payoffs (in units of thousands of dollars) are given by the following payoff table: State of Nature Alternative

15.2-5.* Consider a decision analysis problem whose payoffs (in units of thousands of dollars) are given by the following payoff table: State of Nature Alternative S, S2 80 A1 A2 Az 30 60 25 50 40 Prior probability 0.4 0.6 T (a) Which alternative should be chosen under the maximin pay- off criterion? T (b) Which alternative should be chosen under the maximum likelihood criterion? T (C) Which alternative should be chosen under Bayes' decision rule? A (d) Using Bayes' decision rule, do sensitivity analysis graphi- cally with respect to the prior probabilities to determine the crossover points where the decision shifts from one alter- native to another (e) Use algebra to solve for the crossover points identified in part (d)

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