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Decision exercises with uncertainty (Part II) 1. A student must decide whether or not to study for a test. If she studies, she will sacrifice
Decision exercises with uncertainty (Part II) 1. A student must decide whether or not to study for a test. If she studies, she will sacrifice time equivalent to 1.9 pts. (time that she can dedicate to other branches). Knowing his abilities, and given his experience, he knows that if he studies and the control is easy, he will get 6.5 points, but if he studies and the control has a medium or difficult difficulty, he would get a 5.0 or a 2.0, respectively. On the other hand, if he does not study and the control is easy, medium or difficult, he would get a 4.5, 2.5, 1.5, respectively. a) Construct the corresponding payoff matrix, identifying the actions and states of nature. b) Considering that the student is quite optimistic, what decision would he adopt? c) Now consider that the student is pessimistic, does your decision change? d) Analyze which would be the best decision based on the optimism coefficient (Hurwicz method). e) Develop Savage's method. What will the student decide
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