Question: 2. For Question 1, suppose that the decision maker believes that the probability of state of nature s, is 0.3 and the probability of state

2. For Question 1, suppose that the decision maker believes that the probability of state of nature s, is 0.3 and the probability of state of nature sz is 0.7. Complete the following: a. Draw a decision Tree. b. Use the expected value approach to determine an optimal decision. QUESTION 1 1. Suppose that a decision maker faced with two decision alternatives (d1, d2 and d3), and two states of nature (s1, s2 and 3) develops the following profit payoff table: State of Nature Decision Alternatives S1 S2 di 450 300 d2 350 420 d3 230 520 If nothing is known about the probabilities of the two states of nature, what is the recommended decision using: a. Optimistic approach b. Conservative approach c. minimax regret approach

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