Question: A payoff table [profits] is shown below.
|
States of Nature
|
Decisions
|
S1
|
S2
|
S3
|
D1
|
10
|
8
|
6
|
D2
|
14
|
15
|
2
|
D3
|
7
|
8
|
9
|
[A] Using an equal likelihood criterion, what decision should be made by the decision maker?
[B] Using minimax regret criterion, what decision should be made by the decision maker?
[C] If the probabilities of s1, s2, and s3 are 0.2, 0.4, and 0.4, respectively, what decision should be made by the decision maker?
[D] Using the maximax criterion, what decision should be made by the decision maker?
[E] Using the maximin criterion, what decision should be made by the decision maker?