The next four questions refer to a problem for which we have three decision alternatives and three states of nature with
Posted: Mon Nov 15, 2021 12:36 pm
The next four questions refer to a problem for which we have
three decision alternatives and three states of nature with the
following payoffs:
s1 s2 s.3
d1 400 500 660
d2 -250 650 800
d3 -400 580 990
Which decision should be made according to the optimistic
approach? Which decision should be made according to the minimax
regret approach? Suppose the following probabilities are given:
P(s1) = 0.2, P(s2) = 0.5, P(s3) = 0.3. Which decision should be
made according to the expected value approach? What is the expected
value of perfect information?
three decision alternatives and three states of nature with the
following payoffs:
s1 s2 s.3
d1 400 500 660
d2 -250 650 800
d3 -400 580 990
Which decision should be made according to the optimistic
approach? Which decision should be made according to the minimax
regret approach? Suppose the following probabilities are given:
P(s1) = 0.2, P(s2) = 0.5, P(s3) = 0.3. Which decision should be
made according to the expected value approach? What is the expected
value of perfect information?