ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question 1. Following payoff table (Table 1) shows profit for a decision analysis problem with two decision alternatives and three states of nature.
Table 1:
Decision Alternative | Nature of States | ||
s1 | s2 | s3 | |
d1 | 250 | 100 | 25 |
d2 | 100 | 100 | 75 |
Recommend a decision based on the use of the optimistic, conservative, and minimax regret approaches.
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