Apayoff table is given as

choices

x

y

z

states of nature

probability

a

.2

250

300

600

b

.5

750

-250

500

c

.3

500

1200

500
". a. recommend a decision for each of the following: optimistic, conservative and minimax regret. b. what is the expected payoff under uncertainty for each choice? what is the best choice? c. what is the expected payoff under certainty (making the best choice for each state of nature)? d. what is the expected opportunity loss for selecting choice z? e. what is the expe cted value of perfect information? "

Value economics capital scarcity opportunity cost wealth labor trade-offs standard of living good a. condition of not having enough resources to produce all the things people want b. alternative choices made by consumers in the marketplace c. sum of those economic products that are tangible, scarce, useful, and transferable d. tools, equipment, machinery, and factories used in the production of goods and services e. tangible item that is economically useful or that satisfies an economic want f. quality of life based on the ownership of the necessities and luxuries that make life easier g. people with all their efforts, abilities, and skills h. cost of the next-best alternative use of money, time, or resources when one choice is made rather than another i. study of how people try to satisfy their needs through the careful use of scarce resources j. worth that can be expressed in dollars and cents