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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