Question: Problem 6 (10 Points): A payoff table (the payoffs are profits) is given as Decision d dz d Si 10 14 7 State of Nature

Problem 6 (10 Points): A payoff table (the payoffs are profits) is given as Decision d dz d Si 10 14 7 State of Nature S2 8 15 8 S3 6 2 9 a. What decision should be made by the optimistic decision maker? (1 point) (Show all the details of your answers/computations. If you do not show the details, you will not get the points.) b. What decision should be made by the conservative decision maker? (1 point) (Show all the details of your answers/computations. If you do not show the details, you will not get the points.) c. What decision should be made under minimax regret? (3 points) (Show all the details of your answers/computations. If you do not show the details, you will not get the points.) c. What decision should be made under minimax regret? (3 points) (Show all the details of your answers/computations. If you do not show the details, you will not get the points. d. If the probabilities of S1, S2, and sy are 2, 4, and 4, respectively, then what decision should be made under expected value? (2 points) (Show all the details of your answers/computations. If you do not show the details, you will not get the points.) e. What is the EVPI? (3 points) (Show all the details of your answers/computations. If you do not show the details, you will not get the points.)

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