Essentials of Business Analytics 1st Edition by Jeffrey Camm,James Cochran,Michael Fry,Jeffrey Ohlmann ,David Anderson

Exercise 23

The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature:

a. Construct a decision tree for this problem.
b. If the decision maker knows nothing about the probabilities of the three states of nature, what is the recommended decision using the optimistic, conservative, and minimax regret approaches