Consider the following payoff table that represents the profits earned for each alternative (A, B, and C) under the states of nature S1, S2, and S3.
S1
S2
S3
A
$60
$145
$120
B
$75
$125
$110
C
$95
$85
$130
1) Using the maximax criterion, what would be the highest expected payoff?
a) $145
b) $124
c) $120
d) $110
e) $100
2) Using the maximin criterion, what would be the highest expected payoff?
a) $145
b) $125
c) $85
d) $75
e) $60