The following 5 questions are based on this:
The following payoff table shows the profit for a decision problem with two states of nature and five decision alternatives:
State of Nature
Decision Alternatives
S1
S2
D1
5
7
D2
-4
1
D3
1
-3
D4
10
2
D5
6
4
What would be the decision if you follow the optimistic/best/max criteria?
Select one:
a. D3
b. D1
c. D5
d. D4
e. D2
What would be the decision if you follow the conservative/best/worst/min criteria?
Select one:
a. D2
b. D4
c. D5
d. D1
e. D3
What would be the decision if you follow the minmax regret criteria?
Select one:
a. D5
b. D4
c. D3
d. D2
e. D1
What would be the decision if the probabilities for S1 and S2 are 0.2 and 0.8 respectively? How about the probabilities for S1 and S2 change to 0.8 and 0.2 respectively?
Select one:
a. D1, D1
b. D3, D4
c. D1, D5
d. D2, D4
e. None of the choices listed here.
What is the EVPI if the probabilities for S1 and S2 are 0.2 and 0.8 respectively?
Select one:
a. 1
b. 7.6
c. 6.6
d. None of the choices.
e. 0