A payoff table is given as

Choices X Y Z

States of Nature Probability

A .2 250 300 600

B .5 750 -250 500

C .3 500 1200 500

Note that this is set up like that demonstrated in blackboard.

Recommend a decision for each of the following: optimistic, conservative and minimax regret.

What is the expected payoff under uncertainty for each choice? What is the best choice?

What is the expected payoff under certainty (making the best choice for each state of nature)?

What is the expected opportunity loss for selecting choice Z?

What is the expected value of perfect information?