The table shows both prospective profits and losses for a company, depending on what decision is...

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. Show your work (regret table).

	State of Nature
Decision	s₁	s₂	s₃
d₁	30	80	−30
d₂	100	30	−40
d₃	−80	−10	120
d₄	20	20	20

a.	If an optimistic strategy is used.
b.	If a conservative strategy is used.
c.	If minimax regret is the strategy.

Expert Solution

orchestra answered 2 years ago

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