PLEASE ANSWER (ALL) FAST FOR UPVOTE ANSWER ONLY QUESTION 3:

INFORMATION FROM QUESTION 2:

Question 3 (7.5 points): The following profit payoff table was presented in Question 3. Suppose that the decision maker obtained the probability assessments P(si) = 0.45, P(52) = 0.25, and P(83) = 0.30. Use the expected value approach to determine the optimal decision. (2 points) b. What is the optimal decision strategy if perfect information were available? (2 points) c. What is the expected value for the decision strategy developed in part (b)? (2 points) d. What is the expected value of perfect information? (1.5 points) Question 2 (7.5 points): The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: State of Nature Decision Alternative si S2 53 di 150 180 130 d2 200 160 110 a. Construct a decision tree for this problem. (1 point) b. If the decision maker knows nothing about the probabilities of the three states of nature what is the recommended decision using the optimistic approach? (2.5 points) c. If the decision maker knows nothing about the probabilities of the three states of nature what is the recommended decision using the conservative approach? (2.5 points) d. If the decision maker knows nothing about the probabilities of the three states of nature what is the recommended decision using the minimax regret approach? (1.5 points)