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?
