Question
The following table shows both prospective profits and losses for a company, depending on what decision is made and what state of nature occurs.
The following table shows both prospective profits and losses for a company, depending on what decision is made and what state of nature occurs. State of Nature Decision 5 5 53 d -30 d 105 30 -40 -75 -10 125 a Decision d d 30 90 Use the information to determine what the company should do. Show your work (regret table). (a) Show a regret table. 25 25 25 5 State of Nature (b) If an optimistic strategy is used. $ (c) If a conservative strategy is used. (d) If minimax regret is the strategy. 53 Maximum Regret
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Stats Data And Models
Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock
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