Exercise 1.7. Suppose that utility payoffs depend on decisions and states as shown in Table 1.3. Let (p(o,),p(02)) denote the decision-maker's subjective probability distribution over N = {0, 0,}. a. Suppose first that B = 35. For what range of values of p(e) is a optimal? For what range is optimal? For what range is y optimal? Is any decision strongly dominated? If so, by what randomized strategies? b. Suppose now that B = 20. For what range of values of pre,) is a optimal? For what range is optimal? For what range is y optimal? Is any decision strongly dominated? If so, by what randomized strategies? c. For what range of values for the parameter B is the decision B strongly dominated? Table 1.3 Expected utility payoffs for states 6, and 0, Decision 0, 15 B 02 B 55 90 75 40 Y Exercise 1.7. Suppose that utility payoffs depend on decisions and states as shown in Table 1.3. Let (p(o,),p(02)) denote the decision-maker's subjective probability distribution over N = {0, 0,}. a. Suppose first that B = 35. For what range of values of p(e) is a optimal? For what range is optimal? For what range is y optimal? Is any decision strongly dominated? If so, by what randomized strategies? b. Suppose now that B = 20. For what range of values of pre,) is a optimal? For what range is optimal? For what range is y optimal? Is any decision strongly dominated? If so, by what randomized strategies? c. For what range of values for the parameter B is the decision B strongly dominated? Table 1.3 Expected utility payoffs for states 6, and 0, Decision 0, 15 B 02 B 55 90 75 40 Y