The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: Stateof Nature Decision Alternative S1 S2 S3 d1 250 100 25 d2 100 100 75 1) Construct a decision tree for this problem.2) If the decision maker knows nothing about the probabilities of the three states of nature, what is the recommended decision using the optimistic, conservative, and minimax regret approaches?

Maximum and minimum profit: Max profit: for d1 is 250 and d2 is 100 Min profit: for d1 is 25 and d2…

Answered: The following payoff table shows profit…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature:

	State	of Nature
Decision Alternative	S₁	*S₂ S₃*
d₁	250	100 25
d₂	100	100 75

1) Construct a decision tree for this problem.

2) If the decision maker knows nothing about the probabilities of the three states of nature, what is the recommended decision using the optimistic, conservative, and minimax regret approaches?

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