Question: Consider a decision problem with two admissible actions and two possible states of na- ture, each of which is equally likely to occur. (a) Determine

Consider a decision problem with two admissible actions and two possible states of na- ture, each of which is equally likely to occur.

(a) Determine whether each of the following statements is true or false for such problems: (i) The action chosen by the expected monetary value criterion will always be the same as the action chosen by the maximin criterion. (ii) The action chosen by the expected monetary value criterion will always be the sume as the action chosen by the minimax regret criterion. (iii) The action chosen by the expected monetary value criterion will always be that for which the average possible payoff is higher.

(b) Would your answer to statement (iii) in part

(a) be the same if the two states of nature were not equally likely to occur?

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