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
Alternative A $60 $145 $120
Alternative B $75 $125 $110
Alternative C $95 $85 $130
a) Using each of the below criterion what would be the alternative selected and highest expected payoff in $ value?
1) Optimistic Approach
2) Pessimistic Approach
3) Realism (Hurwicz criterion) with an alpha value of 0.7
4) Laplace
5) Minmax regret Approach