Question: QUESTION 1 1. Suppose that a decision maker faced with two decision alternatives (GI and d2 ), and two states of nature (51, 52 and

QUESTION 1 1. Suppose that a decision maker faced with two decision alternatives (GI and d2 ), and two states of nature (51, 52 and 53) develops the following prot payoff table: -nm If nothing is known about the probabilities of the two states of nature, what is the recommended decision using: a. Optimistic approach b. Conservative approach c. minimax regret approach QUESTION 2 2. For Question 1, suppose that the decision maker believes that the probability of state of nature 51 is 0.2, the probability of state of nature 52 is 0.3 and the probability of state of nature 53 is 0.5. Complete the following: a. Draw a decision Tree. b. Use the expected value approach to determine an optimal decision

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