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    Payoff Table and Decisions

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    The following payoff table shows the net dollar returns. If you do not have any knowledge about the state of nature.

    ----a) What is the optimistic decision?
    ----b) What is the Conservative Decision?
    ----c) If you use MinMax regret approach what would be your decision?
    ----d) Once you have some knowledge about the state of nature, what would be your decision?

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    Solution Summary

    The solution gived detailed steps on figuring out the optimistic decision and Conservative Decision using the given payoff table. All formula and calculations are shown and explained.