The EOQ model

States of nature are controllable future events that affect the payoff associated with a decision alternative.

The payoff at the end of a decision tree represents everything along the path leading to that end.

The expected monetary value of an alternative can never be negative.

When probabilities are not available, all decision makers presented with the same payoff table will choose the same decision alternative.

States of nature include everything that could happen, and the decision maker cannot select which state will happen.

States of nature should be defined so that one and only one will actually occur.

To find the Expected Value of Sample Information (EVSI)

Which decision criterion would someone who is pessimistic use in decision making?