Discuss the below:
Q: Suppose that a decision maker faced with four decision alternatives and four states of nature develops the following payoff table:
a) What alternative would you recommend to an optimistic decision-maker? What is the expected payoff of this decision?
b) What alternative would you recommend to an pessimistic decision-maker? What is the expected payoff of this decision?
c) What alternative would you recommend using the equal-likelihood criterion? What is the expected payoff of this decision?
d) What alternative would you recommend using the minimax regret criterion? What is the expected payoff of this decision?