Question

1. John Connor and his friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of death and dismemberment for each activity under the various possibilities for sentient cybernetic organisms they may encounter. They have no idea which of the terminators, the T-X, the T-1000, or the T-100, they might encounter on their outing.

Picnic		Rappelling		Disable Skynet
T-X	100		150		75
T-1000	150		125		100
T-100	200		50		125

1. If the group is optimistic, what decision should they make? [5 Marks]
2. If the group is conservative, what decision will they make? [5 Marks]
3. If the group chooses to minimize their maximum regret, what activity will they choose? [5 Marks]
4. If the probabilities of the T-X, T-1000, and T-100 are 0.2, 0.4, and 0.4, respectively, then what decision should be made using the expected value criterion? [5 Marks]

Answer 1