Problem 13-01 (Algorithmic)

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	S1	S2	S3
d1	290	150	100
d2	170	170	25

1. Choose the correct decision tree for this problem.
2. 

(i) (ii) 290 51 290 170 81 SI du 150 150 52 100 . 170 170 91 52 170 d2 100 d2 53 25 83 25 3 (iv) 290 9] 290 150 170 150 10-45 di 100 83 92 170 170 100 S2 di SI .3 1 170 25 25 d2 b. If the decision maker knows nothing about the probabilities of the three states of nature, what is the recommended decision using the optimistic, conservative, and minimax regret approaches? Optimistic approach Conservative approach Minimax regret approach