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Uncertainty
Data:
|
|
|
|
|
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1 |
2 |
3 |
4 |
| A |
50 |
30 |
20 |
40 |
| B |
40 |
30 |
30 |
35 |
| C |
30 |
30 |
35 |
30 |
| D |
20 |
25 |
35 |
30 |
A) Assuming a maximax strategy, which alternative would be chosen?
B) If maximin were used, which alternative would be chosen?
C) According to the minimax regret criterion, which alternative would be chosen?
D) If the probability of state 1 equals .4, the probability of state 2 equals .2, the probability of state 3 equals .3, the probability of state 4 equals .1, and the expected value criterion of maximization is used, which alternative would be chosen?