Given the following payoff table determine the best alternat

Given the following payoff table, determine the best alternative based on the criteria listed below:

a. Laplace

b. Maximin

c. Maximax

d. Hurwicz ( = 0.4)

e. Minimax

                                                                      State of Nature

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Alternative

E1

E2

E3

A1

$3,250

$5,000

-$2,000

A2

$3,000

$4,000

$500

A3

$2,500

$2,500

$2500

Solution