Question: QUESTION 1 1. Suppose that a decision maker faced with two decision alternatives (d1 and d2), and two states of nature (s1 and s2) develops

QUESTION 1
1. Suppose that a decision maker faced with two decision alternatives (d1 and d2), and
two states of nature (s1 and s2) develops the following profit payoff table:
State of Nature
Decision Alternatives s1 s2
d1 1500 500
d2 780 650
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

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