3. Consider the possible payoffs to the decision maker under the three states of nature (NS) and three alternatives (dź

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3 Consider The Possible Payoffs To The Decision Maker Under The Three States Of Nature Ns And Three Alternatives Dz 1 (79.55 KiB) Viewed 46 times

3. Consider the possible payoffs to the decision maker under the three states of nature (NS) and three alternatives (dź to d3) given in the table below. S1 S2 di 0 0 dz -3 1 d3 -6 -1 S3 1 2 3 = - = = Say that the state of nature probabilities are P(NS = sı) = 0.1, P(NS = $2) = 0.7, and P(NS = 53) = 0.2. - = (a) What is the best alternative's expected payoff and the EVPI? (b) What is the minimax regret alternative for this decision problem?