Question: A decision maker has prepared the following payoff table. Alternative States of Nature High Low Buy 8 5 - 5 Rent 7 5 4 0

A decision maker has prepared the following payoff table.
Alternative States of Nature
High Low
Buy 8 5 - 5
Rent 7 5 4 0
Lease 4 5 4 5
Prior Probability 0 . 8 0 . 2
Using Baye s Decision Rule, what is the best decision and the expected payoff?

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