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6. Two States of Nature and Two Decision Alternatives. The following payoff table shows the profit for a decision problem with two states of

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6. Two States of Nature and Two Decision Alternatives. The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: Decision Alternative $1 State of Nature 52 d 10 1 4 3 d a. Suppose P(s1) 0.2 and P(s2)=0.8.What is the best decision using the expected value approach? b. Perform sensitivity analysis on the payoffs for decision alternative d Assume that the probabilities are as given in part (a), and find the range of payoffs under states of nature s and s that will keep the solution found in part (a) optimal. Is the solution more sensitive to the payoff under state of nature s or 82 ?

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