Question: Patrick Bateman is considering four alternatives Friday night. The payoff for each opportunity will depend on economic and other conditions and are represented in the

Patrick Bateman is considering four alternatives Friday night. The payoff for each opportunity will depend on economic and other conditions and are represented in the payoff table below.

Under which decision making is the:

A) optimistic

B) pessimistic

C) minimax

D) Suppose that the likelihood for each of the scenarios is 0.5, 0.1, 0.35, and 0.05 respectively. What is the optimal decision under the expected value approach?

E) Suppose that the likelihood for each of the scenarios is 0.5, 0.1, 0.35, and 0.05 respectively. What is the expected value of perfect information?

Patrick Bateman is considering four alternatives

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