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Decision Alternative State of Nature State of Nature State of Nature S1 S2 S3 d1 250 100 25 d2 100 100 75 Construct a decision

Decision Alternative State of Nature State of Nature State of Nature S1 S2 S3 d1 250 100 25 d2 100 100 75 Construct a decision tree for this problem. If the decision maker knows nothing about the probabilities of the three states of nature, what is the recommended decision using optimistic, conservative, and minimax regret approaches? What other applications, problems, or opportunities could you use a decision tree to solve? Provide at least two examples with detail of how you would set up the decision trees.

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