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Suppose that a decision maker faced with four decision alternatives and four states of nature develops the following profit payoff table: If the decision maker
Suppose that a decision maker faced with four decision alternatives and four states of nature develops the following profit payoff table: If the decision maker knows nothing about the probabilities of the four states of nature. Recommend an optimal alternative for decision maker based on each of the criteria of decisions: (1) Laplace Maximin/minimax (3) Savage regret (4) Hurwicz with = 0.5 , and determine the range of for which a2 would be optimal
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