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QUESTION 1 The following payoff table shows the costs for a decision analysis problem with four decision alternatives (d1,22,23,d4) under four states of nature (81,82,83,84). s1 s2 s3 s4 d1 14 9 105 d2 11 10 8 7 d3 9 10 10 11 d4 8 10 11 13 Complete the table of (decisions,state of nature) as well as the corresponding payoff for the following decision making strategies: Decision State of Nature Payoff Optimist Conservative 1 Conservative 2 Min Max Regret QUESTION 2 Using the payoff table of costs, which approach do you prefer? Optimistic Conservative Regret None of the above QUESTION 3 Using the payoff table of costs, why do you prefer this approach? Because the cost is highest Because the cost is lowest. It doesn't make any difference. The cost is negligible QUESTION 4 The following payoff table shows the profits for a decision analysis problem with four decision alternatives (d1,02,03,04) under four states of nature (51,52,53,54). s1 s2 s3 84 d1 14 9 105 d2 11 10 8 7 d3 9 10 10 11 d4 8 10 11 13 Complete the table of (decisions, state of nature) as well as the corresponding payoff for the following decision making strategies: Decision State of Nature Payoff Optimist Conservative 1 MinMax Regret QUESTION 5 Using the payoff table (profits), what is the best approach? conservative regret optimistic none. QUESTION 6 the best approach? Using the profit payoff table, why is Because profit is lowest Because profit is highest There is no profit difference. None of the above. QUESTION 7 Using the payoff table (profits), and assuming that the probabilities for each of the states of nature are given as 0.2, 0.4, 0.3 and 0.1 respectively calculate using expected value, the expected payoff for the decision as well as the actual decision: Decision Payoff EV QUESTION 8 Using the payoff table (costs), and assuming that the probabilities for each of the states of nature are given as 0.2, 0.4.0.3 and 0.1 respectively calculate using expected value, the expected payoff for the decision as well as the actual decision: Decision Payoff EV