The EOQ model

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

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

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

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

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.

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

For a given event, the payoffs for alternatives 1, 2, and 3 (the only alternatives) are 50, 125, and -50. The regret associated with alternative 1 is