Question: Consider an optimization problem under uncertainty with the following Decisions and Outcomes: Decision 1 Decision 2 Decision 3 Payoff/Cost Probability Payoff/Cost Probability Payoff/Cost Probability $50,000

Consider an optimization problem under uncertainty with the following Decisions and Outcomes:

Decision 1

Decision 2

Decision 3

Payoff/Cost

Probability

Payoff/Cost

Probability

Payoff/Cost

Probability

$50,000

0.04

$5,000

0.6

$3,000

0.5

-$10,000

0.06

-$1,000

0.4

-$3,000

0.5

$30,000

0.1

-$2,500

0.8

What Decision will be optimal under each optimality criterion on the left?

Maximin Criterion

Minimax Criterion

Maximax Criterion

Maximum Expected Monetary Value (Max EMV)

Minimax Regret Criterion

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