Question: (20 points) Suppose a decision maker is faced with four decision alternatives and four states of nature (these are profits): States of natue alternative S1

(20 points) Suppose a decision maker is faced with four decision alternatives and four states of nature (these are profits): States of natue alternative S1 S2 S3 S4 a1 14 9 10 5 a2 14 8 10 4 a3 9 10 11 12 a4 8 12 13 13 a. Are any decision alternatives dominated? b. Find the optimal decision using the Hurwicz criterion. Use alpha=0.7. (5 points) C. Find the optimal decision using the Maximax criteria. (5 points) d. Find the optimal decision using the Savage Minimax Regret criteria. (5 points) e. What would be the optimal decision if you knew the probability of S2 was 5. the probability of S3 was.20, and the probability of S4 was 15? (5 points)

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