Posted: September 26th, 2016

The table shows both prospective profits and losses for a company, depending on what decision is made and what state of nature occurs.

The table shows both prospective profits and losses for a company, depending on what decision is made and what state of nature occurs. Use the information to determine what the company should do.

s1 s2 s3
d1 30 80 -30
d2 100 30 -40
d3 -80 -10 120
d4 20 20 20

a. if an optimistic strategy is used.
b. if a conservative strategy is used.
c. if minimax regret is the strategy.