Explain Properly with Payoff matrix Table in each step.

Question 1: A bakers and sweets must decide how many specialty cakes or specialty sweets to bake each morning. From experience, he knows that the daily demand for cakes or sweets ranges from 0 to 4 . If each cake or sweet costs $3.00 to produce and sells for $8.00 and if any unsold cakes or sweets are thrown into the garbage at the end of the day, set up a payoff table (courses of actions are demand and states of nature are baked cakes or sweets) and to help the baker decide how many cake or sweet to bake. A. Which option bakers and sweets choose a. if he is neither too optimistic nor too pessimistic and the payoff matrix shows minimization problem. b. if each state of nature are equally occur and the payoff matrix shows profit payoffs. B. Using an expected monetary value, what alternative bakers and sweets choose. If payoff matrix represents maximization payoffs and the probabilities of each states of nature are 30%,40%,20% and 50% respectively. Take probability column wise