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?
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.