The table below contains profit projections for various decisions to be made by the University. The associated probabilities for the states of nature are .40 for high demand, .35 for medium demand; and .25 for low demand.What is the best decision the University can make if they employ the optimistic approach to decision making?
|
High Demand
|
Medium Demand
|
Low Demand
|
|
D1
|
1,000,000
|
700,000
|
250,000
|
|
D2
|
400,000
|
400,000
|
400,000
|
|
D3
|
1,100,000
|
1,000,000
|
100,000
|
|
D4
|
800,000
|
400,000
|
200,000
|