A decision maker faced with four decision alternatives and four sates of nature develops the following...

 

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A decision maker faced with four decision alternatives and four sates of nature develops the following cost matrix. States of nature Decision S_2 S 4 alternative d_1 14 10 5 d_2 11 10 8 7 d_3 9. 10 10 11 d_4 8 10 11 13 (a) State and use the average payoff strategy to choose the best decision. (b) State and use the aggressive strategy to choose the best decision. (c) State and use the conservative strategy to choose the best decision. (d) State and use the regret strategy to make the best decision. (e) Suppose the decision maker obtains information that enables the following probabilities assessments: P(s_1) = 0.5; P(s_2) = 0.2; P(s 3) = 0.2; and P(s_4) = 0.1. Use the expected value approach to determine the optimal strategy. A decision maker faced with four decision alternatives and four sates of nature develops the following cost matrix. States of nature Decision S_2 S 4 alternative d_1 14 10 5 d_2 11 10 8 7 d_3 9. 10 10 11 d_4 8 10 11 13 (a) State and use the average payoff strategy to choose the best decision. (b) State and use the aggressive strategy to choose the best decision. (c) State and use the conservative strategy to choose the best decision. (d) State and use the regret strategy to make the best decision. (e) Suppose the decision maker obtains information that enables the following probabilities assessments: P(s_1) = 0.5; P(s_2) = 0.2; P(s 3) = 0.2; and P(s_4) = 0.1. Use the expected value approach to determine the optimal strategy.

Answer rating: 100% (QA)

a Average Payoff of d1 1491054 95 Average Payoff of d2 1110874 9 Average Payoff of d3 91010114 10 Av... View the full answer