Question: Consider a decision analysis problem whose payoffs (in units of thousands of euros) are given by the following payoff table: Alternative State of Nature 5,

Consider a decision analysis problem whose
Consider a decision analysis problem whose payoffs (in units of thousands of euros) are given by the following payoff table: Alternative State of Nature 5, 52 80 25 30 50 60 40 0.41 0.59 Prior probability a) Which alternative should be chosen under the maximin payoff criterion? (6 p.), b) Which alternative should be chosen under the maximum likelihood criterion? (6 p.) c) Which alternative should be chosen under Bayes' decision rule? (6 p.) d) Using Bayes' decision rule, do sensitivity analysis graphically with respect to the prior probabilities to determine the crossover points where the decision shifts from one alternative to another. (6 p.) e) Use algebra to solve for the crossover points identified in part (d). (6 p.)

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