Use Payoff Table 1 for Problems 1, 2, and 3 Payoff Table 1 Investment Return Decision Alternative High Medium Low Aggressive Growth 250 100 25 Conservative Fund 100 100 75 Given the data in Payoff Table 1, answer the following Construct a decision tree for this problem If the you know nothing about the probabilities of the three states of nature, what is the recommended decision using the optimistic, conservative and minimax regret approaches Interpret the findings Is there a clear alternative Given the data in Payoff Table 1, you have learned the probabilities for the three states of nature are P(s 1 ) 65, P(s 2 ) 15 and P(s 3 ) 20 Construct the new decision tree with the probabilities What is the expected value of each alternative result What is the decision you would make Calculate the expected value of perfect information Comment on the results compared to the information from problem 1 Given the data in Payoff Table number 1, you need to test the sensitivity of your results To this you adjust the probabilities from problem 2 to the following P(s 1 ) 60, P(s 2 ) 15 and P(s 3 ) 25 P(s 1 ) 70, P(s 2 ) 20 and P(s 3 ) 10 P(s 1 ) 65, P(s 2 ) 20 and P(s 3 ) 15 P(s 1 ) 65, P(s 2 ) 10 and P(s 3 ) 25 Recalculate the expected values for each alternative Does this change the results of your original decision Explain your answers plzzz give explanation too in language Thank you

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Question: Use Payoff Table 1 for Problems 1, 2, and 3. Payoff Table #1 Investment Return Decision Alternative High Medium Low Aggressive Growth 250 100 25

Use Payoff Table 1 for Problems 1, 2, and 3.

Payoff Table #1

Investment Return

Decision Alternative

High

Medium

Low

Aggressive Growth

250

100

Conservative Fund

100

Given the data in Payoff Table #1, answer the following:
Construct a decision tree for this problem.
If the you know nothing about the probabilities of the three states of nature, what is the recommended decision using the optimistic, conservative and minimax regret approaches?
Interpret the findings.Is there a clear alternative?

Given the data in Payoff Table #1, you have learned the probabilities for the three states of nature are P(s₁) = .65, P(s₂) = .15 and P(s₃) = .20.
Construct the new decision tree with the probabilities.
What is the expected value of each alternative result?
What is the decision you would make?
Calculate the expected value of perfect information.
Comment on the results compared to the information from problem #1.

Given the data in Payoff Table number #1, you need to test the sensitivity of your results.To this you adjust the probabilities from problem #2 to the following.
P(s₁) = .60, P(s₂) = .15 and P(s₃) = .25.
P(s₁) = .70, P(s₂) = .20 and P(s₃) = .10.
P(s₁) = .65, P(s₂) = .20 and P(s₃) = .15
P(s₁) = .65, P(s₂) = .10 and P(s₃) = .25

Recalculate the expected values for each alternative.Does this change the results of your original decision?Explain your answers.

plzzz give explanation too in language.....Thank you

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