Question: Answer all three parts correct or do not attempt!! Consider the following decision table where cell entries are profits. Alternative Actions States of Nature S1

Answer all three parts correct or do not attempt!!

Consider the following decision table where cell entries are profits.

Alternative

Actions

States of Nature

S1

S2

S3

S4

A1

90

80

-15

-40

A2

75

70

10

-20

A3

0

65

80

55

A4

-30

-10

75

110

a) Which alternative should be chosen using pessimistic criterion?

A1? A2? A3? or A4?

b) Which alternative should be chosen using optimistic criterion?

A1? A2? A3? or A4?

c) Which alternative should be chosen using equal likelihood criterion?

A1? A2? A3? or A4?

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