Question: Suppose that a decision maker faced with three decisions alternatives and four states of nature develops the following profit payoff table: Decision State of Nature

Suppose that a decision maker faced with three

Suppose that a decision maker faced with three decisions alternatives and four states of nature develops the following profit payoff table: Decision State of Nature Alternative S1 S2 S3 S4 D1 14 9 10 5 D2 11 10 8 7 D3 9 10 10 11 1) If the decision maker knows nothing about the probabilities of the states of nature, what is the recommended decision using the optimistic/maximax approach? 2) If the decision maker knows nothing about the probabilities of the states of nature, what is the recommended decision using the conservative/maximin approach? 3) If the decision maker knows nothing about the probabilities of the states of nature, what is the recommended decision using the minimax regret approach? Show a regret table

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