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c.)

Problem 13-08 (Algorithmic) The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative 5 1 S 1 4 0 2 6 1 a. Use graphical sensitivity analysis to determine the range of probabilities of state of nature s 1 for which each of the decision alternatives has the largest expected value. If required, round your answers to two decimal places. di is optimal for probability of s 1 d2 is optimal for probability of s 1 2 b. Suppose P(s1) = 0.8 and P(52) = 0.2. What is the best decision using the expected value approach? Best decision: di c. Perform sensitivity analysis on the payoffs for decision alternative di. Assume the probabilities are as given in part (b), and find the range of payoffs under states of nature s1 and s2 that will keep the solution found in part (b) optimal. Is the solution more sensitive to the payoff under state of nature si or s2? The input in the box below will not be graded, but may be reviewed and considered by your instructor