The following profit payoff table was presented in problems 1 and 4

Question # 00012377 Posted By: vikas Updated on: 04/15/2014 05:09 PM Due on: 05/12/2014
Subject Mathematics Topic General Mathematics Tutorials:
Question
Dot Image

The following profit payoff table was presented in problems 1 and 4:
State of Nature
Decision Alternatives s1 s2 s3
d1 250 100 25
d2 100 100 75

The probabilities for the states of nature are P(s1) = .65, P(s2) = .15, and P(s3) = .20

a) What is the optimal decision strategy if perfect information were available?
b) What is the expected value for the decision strategy developed in part (a)?
c) Using the expected value approach what is the recommended decision without perfect information? What is its expected value?
d) What is the expected value of perfect information?

Dot Image
Tutorials for this Question
  1. Tutorial # 00011919 Posted By: vikas Posted on: 04/15/2014 05:09 PM
    Puchased By: 2
    Tutorial Preview
    The solution of The following profit payoff table was presented in problems 1 and 4...
    Attachments
    The_probabilities_for_the_states_of_nature_Solution.docx (30.51 KB)

Great! We have found the solution of this question!

Whatsapp Lisa