Question: i need solution 1 and 2 Suppose that you are given a decision situation with three possible states of nature: s1, s2, and 53. The

i need solution 1 and 2 i need solution 1 and 2 Suppose that you are

Suppose that you are given a decision situation with three possible states of nature: s1, s2, and 53. The prior probabilities are P(51) = 0.2, P(52)=0.5. The pay off values (in table below) were in term of profit. The payoff table correspond of situation is the following: State of Nature S2 SI S3 16 14 Decision Alternatives Decision 1 Decision 2 Decision 3 Decision 4 28 10 12 20 32 -2 41 -19 60 -24 1. Which decision with optimistic manager would be chosen (1 point) 2. Which decision with pessimistic manager would be chosen (1 point)

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