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3. Consider the possible payoffs to the decision maker under the three states of nature (NS) and three alternatives (dź
Posted: Fri May 20, 2022 7:16 am
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3. Consider the possible payoffs to the decision maker under the three states of nature (NS) and three alternatives (dź to d3) given in the table below. S1 S2 di 0 0 dz -3 1 d3 -6 -1 S3 1 2 3 = - = = Say that the state of nature probabilities are P(NS = sı) = 0.1, P(NS = $2) = 0.7, and P(NS = 53) = 0.2. - = (a) What is the best alternative's expected payoff and the EVPI? (b) What is the minimax regret alternative for this decision problem?