Solve the following problem using minimax, maximin, Savage, and Hurvickz. 

The president of a company in a highly competitive industrial branch considers that a company employee is providing confidential information to a rival company. Is 90% certain that this informant is the treasurer of the company, whose contacts have been extremely valuable in obtaining financing for the company? If you fire him and he's the whistleblower, the company wins $100,000. If you fire him, but he is not the whistleblower, the company loses his experience and still has an informant on the team, at a loss to the company of $500,000. If the company does not fire the treasurer, the company loses $300,000, whether or not he is the whistleblower, since in both cases the whistleblower remains in the company.

Answer rating: 100% (QA)

There are two decision alternatives Fire or Dont fire the employee There are two states of nature th... View the full answer