IA payoff table is given as aWhat choice should be made by t

I.A payoff table is given as a.What choice should be made by the optimistic decision maker?

Solution

The optimistic decision maker is one who has optimist nature. He tries to get best out of best. He thinks that the state of nature would be in his favour so he selects that decision alternative which gives the highest pay off. So in the given question following choices would be made by an optimistic decision maker

d1= s3= 500

d2= s3= 700

d3= s3= 800