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    Quantitative Methods and Decision Theory: Payoff Table and Mini-max Regret

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    The following payoff table shows the profit for a decision problem with three states of nature and two decision alternatives:

    State of Nature
    DA s1 s2 s3
    d1 -20 40 100
    d2 10 45 70

    I need to make a decisions using the mini-max regret approaches and justify the decisions?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:57 pm ad1c9bdddf

    Solution Preview

    In order to find the best decision using the mini-max regret approach, then we must start by find the Regret values for each state of nature.

    The regret for a decision given a state of nature is the difference between the payoff of that decision, and the payoff from the best ...

    Solution Summary

    This solution walks the student through the mini-max regret approach for the table matrix decision.