Refer to the following payoff table in which D1 through

Refer to the following payoff table in which D1 through D4 represent decisions, S1 through S4 represent states of nature, and the values in the cells represent profits. The optimal decision under the maxima criterion is:

S1

S2

S3

S4

D1

-20

40

60

100

D2

30

120

60

-50

D3

30

30

40

40

D4

10

-60

80

70

Select one:

a. D1

b. D2

c. D3

d. D4

In the payoff table from the previous question, what is the optimal decision under the maximin criterion?

Select one:

a. D1

b. D2

c. D3

d. D4

In the analysis of a typical decision analysis problem such as the two problems above, all but one of the following can be achieved. Which of the following cannot be achieved?

Select one:

a. Analyze the problem logically

b. Incorporate uncertainty in decision-making

c. Help make the best decision

d. Help ensure the best state of nature happens


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