Consider the following decision scenario: $$\begin{array} { | l | l | l | l | l | }
\hline { \text { Alternative } } & { \text { State of Nature } } & & \
\hline & \# 1 & \# 2 & \# 3 & \# 4 \
\hline \text { A } & 1 & 0 & 1 & 6 \
\hline \text { B } & 1 & 5 & 4 & 2 \
\hline \text { C } & 3 & 2 & 2 & 3 \
\hline
\end{array}$$ If you are uncertain which state of nature will occur, and use the Laplace criterion, which alternative will you select?

Question

Consider the following decision scenario: $$\begin{array} { | l | l | l | l | l | } 
\hline  { \text { Alternative } } &  { \text { State of Nature } } & & \
\hline & \# 1 & \# 2 & \# 3 & \# 4 \
  \hline \text { A } & 1 & 0 & 1 & 6 \
\hline \text { B } & 1 & 5 & 4 & 2 \
\hline \text { C } & 3 & 2 & 2 & 3 \
\hline
\end{array}$$ If you are uncertain which state of nature will occur, and use the Laplace criterion, which alternative will you select?

Quizplus · Accepted Answer

The Answer of Consider the following decision scenario: $$\begin{array} { | l | l | l | l | l | } 
\hline  { \text { Alternative } } &  { \text { State of Nature } } & & \
\hline & \# 1 & \# 2 & \# 3 & \# 4 \
  \hline \text { A } & 1 & 0 & 1 & 6 \
\hline \text { B } & 1 & 5 & 4 & 2 \
\hline \text { C } & 3 & 2 & 2 & 3 \
\hline
\end{array}$$ If you are uncertain which state of nature will occur, and use the Laplace criterion, which alternative will you select?

Consider the Following Decision Scenario If You Are Uncertain Which State of Nature Will Occur