. For Question 1, suppose that the decision maker believes that the probability of state of nature s1 is 0.6 and the probability of state of nature s2 is 0.4. Complete the following:

a. Draw a decision Tree.

b. Use the expected value approach to determine an optimal decision.

Please do in word document

1. Suppose that a decision maker faced with two decision alternatives (d1 and d2), and two states of nature (s1 and 52) develops the following profit payoff table: State of Nature Decision Alternatives Si S2 1500 500 di 780 650 d2 If nothing is known about the probabilities of the two states of nature, what is the recommended decision using: a. Optimistic approach b. Conservative approach c. minimax regret approach