Question: Problem 2: (a) Assume the payoffs represent profits. Determine the alternative that would be chosen under each of these decision criteria: Maximin, Maximax, Laplace. Justify

Problem 2: (a) Assume the payoffs represent

Problem 2: (a) Assume the payoffs represent profits. Determine the alternative that would be chosen under each of these decision criteria: Maximin, Maximax, Laplace. Justify your answer. Maximin | Maximax Laplace New Bridge No New Built Bridge Alternative capacity for new store Small (A) Medium(B) Large (C) 14 1 2 10 4 6 (b) Using the information in the payoff uable, develop a table of regrets, and then: 1. Determine the alternative that would be chosen under minimax regret. 2. Determine the expected value of perfect information using the regrettable, assuming that the probability of a new bridge being built is.60. (c) Assuming only the alternatives A & C are valid. Using graphical sensitivity analysis, determine the probability for no new bridge for which each alternative would be optimal (d) Using the probabilities of 60 for a new bridge and 40 for no new bridge, Construct a decision tree for the problem showing expected values

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