Question

The following is a payoff table giving profits for various situations. What decision would an optimist make?

a. Alternative 2
b. Do Nothing
c. State of Nature A
d. Alternative 1
e. Alternative 3

Answer 1

An optimist would choose Alternative 3 as their decision, based on the potential return or payoff of the options.

Step-by-step explanation:

An optimist would make the decision to select Alternative 3. This decision would be based on the potential return or payoff of the options.

Although the payoff table is not provided, the optimist would choose the option that has the highest potential return or profit.

Therefore, Alternative 3 would be the choice made by an optimist.