Pick and analyze a decisions problem of his own. The decision problems should have the following characteristics:
- Independent alternatives, each of its own characteristics and possible payoffs. The alternatives should be independent and mutually exclusive (i.e., only one alternative is to be selected).
- States of nature (at least two) for which the outcome of each alternative may differ.
- Probabilities of the states of nature; you may use historical data, technical reports, literature, surveys, to estimate the probabilities.
- Realistic decision problems of your workplace are more preferred.
- You should solve the decision problem using:
c. Minimum regret
d. Risk neutral