3. You have the following payoff table for a decision analysis problem. Payoffs are in units...

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3. You have the following payoff table for a decision analysis problem. Payoffs are in units of thousands of dollars of profit. STATE OF NATURE ALTERNATIVES S S Sj St d 35 50 45 40 d 45 40 30 60 d 20 35 40 80 a. Which decision alternative would you choose using an optimistic approach? b. Which decision alternative would you choose using a conservative approach? c. Which decision alternative would you choose using the Minimax Regret approach? For parts d and e, assume that P(s) = 0.2, P(s) = 0.1, and P(s) = 0.4 and P(s) = 0.3. d. Which decision alternative would you choose using the EV approach? e. What would be the value of perfect information? 3. You have the following payoff table for a decision analysis problem. Payoffs are in units of thousands of dollars of profit. STATE OF NATURE ALTERNATIVES S S Sj St d 35 50 45 40 d 45 40 30 60 d 20 35 40 80 a. Which decision alternative would you choose using an optimistic approach? b. Which decision alternative would you choose using a conservative approach? c. Which decision alternative would you choose using the Minimax Regret approach? For parts d and e, assume that P(s) = 0.2, P(s) = 0.1, and P(s) = 0.4 and P(s) = 0.3. d. Which decision alternative would you choose using the EV approach? e. What would be the value of perfect information?

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Answer Decision Analysis with Payoff Table Well analyze the decision problem using the provided payoff table STATE OF NATURE ALTERNATIVES s1 s2 s3 s4 ... View the full answer