7 1. The profit payoff table below showing profit for a decision problem with four states ofnature and four decision alternatives are presented below;State ofAlternativeNatureA1A2A3A4S141453040S232384535S351425031S451353437a.Recommend a decisions using the criteria below;i.Maximim criterionii.Maximac criterionwwHurwick criterion (a =0.70)Laplace criterionMinimim criterion (EOL Table)ili.iv.V.b. Assume the probabilities for each state of nature are knows, (S1-D0.3, S2-D0.2, S3-D0.3and S4-0.2). Find the best alternative with EMV and EOL table.c. Based on the results above, which alternative is the best alternative? Why?

Note: As you have posted a multipart question, the first question with 3 subparts is solved. Please…

Answered: 1. The profit payoff table below…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section9.2: Elements Of Decision Analysis

Problem 2P

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