Question: Following payoff table (Table 3) shows profit for a decision Analysis problem with two decision alternatives and two states of nature. Table 3: Decision

Following payoff table (Table 3) shows profit for a decision Analysis problem with two decision alternatives and two states of nature. Table 3: Decision Alternatives D1 D2 (i) States of Nature S1 S2 960 670 -490 320 Without considering the probabilities, recommend a decision based on the use of the optimistic, conservative, and minimax regret approaches. [7] (ii) (!!!) Let us suppose that the probabilities of S1 is 0.7 and probability of S2 is 0.3. Use the expected value approach to find out an optimal decision. [2] [2] Suppose that the probability of S1 is 0.8 and probability of S2 is 0.2. What is the optimal decision using the expected value approach?

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