Referring to the previous problem, another possible criterion is called expected regret. Here we calculate the regret for each cell, take a weighted average of these regrets in each row, weighted by...

Referring to the previous problem, another possible criterion is called expected regret. Here we calculate the regret for each cell, take a weighted average of these regrets in each row, weighted by the probabilities of the outcomes, and choose the decision with the smallest expected regret.


a. Apply this criterion to the simple three-decision, three-outcome example. Which decision do you choose?


b. Repeat part a for the SciTools example.


c. The expected regret criterion is actually equivalent to the EMV criterion, in that they always lead to the same decisions. Argue why this is true.