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0 Question 3 (10 points): The following profit payoff table was presented in Question 2. Suppose that the decision maker obtained the probability assessments P(s) = 0.45, P(s) = 0.25, and P(s) 0.30. Decision Alternative dl d2 $1 150 200 State of Nature $2 180 160 $3 130 110 a. Use the expected value approach to determine the optimal decision. (3 points) b. What is the optimal decision strategy if perfect information were available? (2 points) c. What is the expected value for the decision strategy developed in part (b)? (3 points) d. What is the expected value of perfect information? (2 points)
0 Question 3 (10 points): The following profit payoff table was presented in Question 2. Suppose that the decision maker obtained the probability assessments P(s) = 0.45, P(s) = 0.25, and P(s) 0.30. Decision Alternative dl d2 $1 150 200 State of Nature $2 180 160 $3 130 110 a. Use the expected value approach to determine the optimal decision. (3 points) b. What is the optimal decision strategy if perfect information were available? (2 points) c. What is the expected value for the decision strategy developed in part (b)? (3 points) d. What is the expected value of perfect information? (2 points)