Question: Suppose a decision maker is faced with four decision alternatives and four states of nature. The following table reflects the payoffs with which she is

Suppose a decision maker is faced with four

Suppose a decision maker is faced with four decision alternatives and four states of nature. The following table reflects the payoffs with which she is faced: State of Nature Decision Alternative S1 S2 S3 S4 D 14 9 10 5 11 10 8 7 D3 9 10 10 11 D4 8 10 11 D2 13 a. If the decision maker knows nothing about the probabilities of the four states of nature, what is the recommended decision using the optimistic, conservative, minimax regret, and LaPlace criteria. b. Which criteria do you think is best? Justify your choice. c. Reapply the criteria, assuming the table contains costs and not payoffs

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