Consider two possible states of nature s1 and s2 and three possible actions a1;a2 and a3:

Suppose P(ai; sj) denotes the payo. arising from (ai; sj); i 2 f1; 2; 3gand j 2 f1; 2g: Let P(a1; s1) =

130; 000; P(a2; s1) = 140; 000; P(a3; s1) = 80; 000 and P(a1; s2) = 400; 000; P(a2; s2) = 260; 000; P(a3; s2) =

90; 000

a. Represent this in a table

b. Find the maximin solution

c. Find the minimax solution

d. The probabilitiy of s1 is .6 and the probability of s2 is .4 . Which action would you choose if you

maximize your expected value ?