[All Steps] Given the following table, determine the appropriate decision under uncertainty if the decision maker: is an optimist. is very conservative.
Question: Given the following table, determine the appropriate decision under uncertainty if the decision maker:
- is an optimist.
- is very conservative.
- wants to minimize their regret.
- What would the decision maker do if she could make the decision under condition of risk with probabilities of .2 for a favorable market, .3 for an average market, and .5 for an unfavorable market?
- What is the expected value of perfect information? Interpret this value.
| Alternatives | Favorable Market | Average Market | Unfavorable Market |
| Build a new plant | $350,000 | $240,000 | -$300,000 |
| Subcontract | $180,000 | $90,000 | -$20,000 |
| Use overtime | $110,000 | $60,000 | -$10,000 |
| Do nothing | $ 0 | $ 0 | $ 0 |
Deliverable: Word Document 
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