The following table shows both prospective profits and losses for a company, depending on what decision...

 

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The following table shows both prospective profits and losses for a company, depending on what decision is made and what state of nature occurs. State of Nature Decision 5₁ 5₂ 53 d₂ -30 d₂ 105 30 -40 -75 -10 125 a Decision d₂ d₂ 30 90 Use the information to determine what the company should do. Show your work (regret table). (a) Show a regret table. 25 25 25 5₁ State of Nature (b) If an optimistic strategy is used. $₂ (c) If a conservative strategy is used. (d) If minimax regret is the strategy. 53 Maximum Regret The following table shows both prospective profits and losses for a company, depending on what decision is made and what state of nature occurs. State of Nature Decision 5₁ 5₂ 53 d₂ -30 d₂ 105 30 -40 -75 -10 125 a Decision d₂ d₂ 30 90 Use the information to determine what the company should do. Show your work (regret table). (a) Show a regret table. 25 25 25 5₁ State of Nature (b) If an optimistic strategy is used. $₂ (c) If a conservative strategy is used. (d) If minimax regret is the strategy. 53 Maximum Regret

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To answer this question well need to fill out the regret table using the information provided in the decision matrix The regret table calculates the r... View the full answer