Explain or define each of the following terms.

a. Laplace criterion

b. Minimax regret

c. Expected value

d. Expected value of perfect information


. What information does a decision maker need in order to perform an expected-value analysis of

a problem? 

What options are available to the decision maker if the probabilities of the states of

nature are unknown? 

Can you think of a way you might use sensitivity analysis in such a case?