Question: Consider a decision analysis problem whose payoffs (in units of thousands of dollars) are given by the following payoff table: State of nature State 1

Consider a decision analysis problem whose

Consider a decision analysis problem whose payoffs (in units of thousands of dollars) are given by the following payoff table: State of nature State 1 State 2 State 3 Alternative 1 26 30 24 Alternative 2 23 29 28 Alternative 3 30 22 23 Prior probabilities 0.2 0.5 0.3 C. Which alternative should be chosen under Bayes' decision rule? (5 marks) d. Construct a decision tree for this problem. You should show all necessary numbers and the final decision on the tree. (10 marks)

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