The table shows both prospective profits and losses for a company, depending on what decision is made and what state of nature occurs. Use the information to determine what the company should do. $$\begin{array} { c | r r r }
& & { \text { State of Nature } } \
\text { Decision } & s _ { 1 } & s _ { 2 } & s _ { 3 } \
\hline d _ { 1 } & 30 & 80 & - 30 \
d _ { 2 } & 100 & 30 & - 40 \
d _ { 3 } & - 80 & - 10 & 120 \
d _ { 4 } & 20 & 20 & 20
\end{array}$$
a.if an optimistic strategy is used.
b.if a conservative strategy is used.
c.if minimax regret is the strategy.

Question

The table shows both prospective profits and losses for a company, depending on what decision is made and what state of nature occurs. Use the information to determine what the company should do. $$\begin{array} { c | r r r } 
& & { \text { State of Nature } } \
\text { Decision } & s _ { 1 } & s _ { 2 } & s _ { 3 } \
\hline d _ { 1 } & 30 & 80 & - 30 \
d _ { 2 } & 100 & 30 & - 40 \
d _ { 3 } & - 80 & - 10 & 120 \
d _ { 4 } & 20 & 20 & 20
\end{array}$$ 
a.if an optimistic strategy is used.
b.if a conservative strategy is used.
c.if minimax regret is the strategy.

Quizplus · Accepted Answer

The Answer of The table shows both prospective profits and losses for a company, depending on what decision is made and what state of nature occurs. Use the information to determine what the company should do. $$\begin{array} { c | r r r } 
& & { \text { State of Nature } } \
\text { Decision } & s _ { 1 } & s _ { 2 } & s _ { 3 } \
\hline d _ { 1 } & 30 & 80 & - 30 \
d _ { 2 } & 100 & 30 & - 40 \
d _ { 3 } & - 80 & - 10 & 120 \
d _ { 4 } & 20 & 20 & 20
\end{array}$$ 
a.if an optimistic strategy is used.
b.if a conservative strategy is used.
c.if minimax regret is the strategy.

The Table Shows Both Prospective Profits and Losses for a Company