6 Question 3: [11 marks] Following payoff table (Table 3) shows profit for a decision Analysis problem with two decision alternatives and two states of nature. Table 3: Decision Alternatives D1 D2 States of Nature S1 S2 960 570 320 490 (1) Without considering the probabilities, recommend a decision based on the use of the optimistic, conservative, and minimax regret approaches. I (ii) Let us suppose that the probabilities of S1 is 0.7 and probability of S2 is 0.3. Use the expected value approach to find out an optimal decision Enable Editing contain viruses. Unless you need to edit, it's safer to stay in Protected View. [2] (iii) Suppose that the probability of S1 is 0.8 and probability of S2 is 0.2. What is the optimal decision using the expected value approach? [2] End of document