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The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states
Posted: Mon May 30, 2022 3:46 pm
by answerhappygod
- The Following Payoff Table Shows Profit For A Decision Analysis Problem With Two Decision Alternatives And Three States 1 (10.87 KiB) Viewed 14 times
The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. States of Nature Decision Alternative S₂ 5₂ d₂ 260 110 35 d₂ 110 110 85 Suppose that the decision maker obtained the probabilities P(s₂) = 0.65, P(s₂) = 0.15, and P(s) = 0.20. Use the expected value approach to determine the optimal decision. Ev(d) = EV(d₂) = The optimal decision is ? ✓ wn