|
State of nature
|
|
decision
|
S1
|
S2
|
S3
|
|
D1
|
250
|
750
|
500
|
|
D2
|
300
|
-250
|
1200
|
|
D3
|
500
|
500
|
600
|
The above is the payoff table.
1-what choice should be made by the optimistic decision maker?
2-what choice should be made by the conservative decision maker ?
3-what choice should be made under minimax regret?
4-If the probabilities of D1 ,D2 and D3 are 0.2 ,0.5,and 0.3, respectively, then what choice should be made under expected value?
5- what is the EVPI?