What decision would an optimist make

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The following is a payoff table giving profits for various situations.

States of Nature

Alternatives A B  C
Alternative1 120 140 120
Alternative2 200 100 50
Alternative3 100 120 180
Do Nothing 0 0 0
  1. What decision would an optimist make? Why?
  2. What decision would a conservative make? Why?
  3. Construct a regrets table. What decision should be made using minimax regret?

 

Reference no: EM13223808

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