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The following payoff table shows costs that would be incurred based on the decision (DA or DB) and the future unknown states of nature (S1,

The following payoff table shows costs that would be incurred based on the decision (DA or DB) and the future unknown states of nature (S1, S2, S3). Which decision would a conservative decision maker opt for?

Future State S1

Future State S2

Future State S3

Decision DA

$400

$800

$1,000

Decision DB

$200

$400

$1,500

a) DA

b) DB

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