The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states
Posted: Mon Jul 11, 2022 11:43 am
The following payoff table shows profit for a decision analysisproblem with two decision alternatives and three states ofnature.
s1
s2
s3
d1
d2
(a)
Construct a decision tree for this problem.
Decision Tree
1
2
3
d1
d2
s1
s2
s3
s1
s2
s3
A decision tree has 6 answer blanks. Refer to the adjacent listfor more details.
Description
(b)
If the decision maker knows nothing about the probabilities ofthe three states of nature, what is the recommended decision usingthe optimistic, conservative, and minimax regret approaches?
The recommended decision using the optimistic approachis --?-- d₁ d₂ . The recommendeddecision using the conservative approachis --?-- d₁ d₂ . The recommendeddecision using the minimax regret approachis --?-- d₁ d₂ .
s1
s2
s3
d1
d2
(a)
Construct a decision tree for this problem.
Decision Tree
1
2
3
d1
d2
s1
s2
s3
s1
s2
s3
A decision tree has 6 answer blanks. Refer to the adjacent listfor more details.
Description
(b)
If the decision maker knows nothing about the probabilities ofthe three states of nature, what is the recommended decision usingthe optimistic, conservative, and minimax regret approaches?
The recommended decision using the optimistic approachis --?-- d₁ d₂ . The recommendeddecision using the conservative approachis --?-- d₁ d₂ . The recommendeddecision using the minimax regret approachis --?-- d₁ d₂ .