A decision maker faced with four decision alternatives and four states of nature developsthe following profit payoff table.States of NatureDecision Alternative s1 s2 s3 s4d1 14 9 10 5d2 11 10 8 7d3 9 10 10 11d4 8 10 11 13The decision maker obtains information that enables the following probabilities assessments:P(s1) .5, P(s2) .2, P(s3) .2, and P(s1) .1.a. Use the expected value approach to determine the optimal solution.b. Now assume that the entries in the payoff table are costs. Use the expected valueapproach to determine the optimal decision.
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