twu.instructure.com

Question $2$

$1\mathrm{.}5pts$

Case I: Consider the following payoff table with alternatives A$1$ through A$4$ and states of nature S$1$ and S$2.$

$\backslash$table$[[,$S$1,$S$2],[$A$1,10,0],[$A$2,7,5],[$A$3,4,7],[$A$4,15,-5]]$

What is the best decision alternative using the Maximax criterion and payoff?

Decision A$1$ payoff $10$

Decision A$4-$ payoff $15$

Decision A$3$ payoff $7$

Decision A$2-$ payoff $7$

Question $3$

$1\mathrm{.}5$ pts