Question: write the answer of second question plz ... try to answer both the questions 1. Suppose that a decision maker faced with two decision alternatives

write the answer of second question plz ... try to answer both the questions

1. Suppose that a decision maker faced with two decision alternatives (d1, d2 and d3), and two states of nature (31, 32 and 33) develops the following profit payoff table: State of Nature Decision Alternatives 5 52 d. 450 300 dz 350 420 d 230 520 If nothing is known about the probabilities of the two states of nature, what is the recommended decision using: 2. Optimistic approach b. Conservative approach minimax regret approach QUESTION 2 2. For Question 1, suppose that the decision maker baieves that the probability of state of nature sais 0.3 and the probability of state of nature sais 0.7. Complete the following: a. Draw a decision Tres b. Use the expected value approach to determine an optimal decision 1. Suppose that a decision maker faced with two decision alternatives (d1, d2 and d3), two states of nature (s1, s2 and 53) develops the following profit payoff table: State of Nature Decision Alternatives Si S2 di 450 300 dz 350 420 dz 230 520 If nothing is known about the probabilities of the two states of nature, what is the recommended decision using: a. Optimistic approach b. Conservative approach c.minimax regret approach QUESTION 2 2. For Question 1, suppose that the decision maker believes that the probability of state of nature 5, is 0.3 and the probability of state of nature s2 is 0.7. Complete the following: a. Draw a decision Tree. b. Use the expected value approach to determine an optimal decision Page 1 of 3

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