Question: A manager has developed a payoff label that indicates the profits associated with a set of alternatives under two possible states of nature. Answer the
A manager has developed a payoff label that indicates the profits associated with a set of alternatives under two possible states of nature. Answer the following questions A) if the manager uses maxi min as the decision criterion which of the alternatives would be indicated? B) If the manager uses mini max regret as the criterion, which alternative would be indicated? C) Determine the expected value of perfect information if P(S2)=O. 40 ( 40%) Given this payoff table ALTERNATIVE STATE OF NATURE #1 #2 A $120 $20 B $60 $10 C $10 $110 D $90 $90
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