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: 1 See full Answer Question The following profit payoff table was presented in problems 1 and 4:State of NatureDecision Alternatives s1 s2 s3d1 250 100 25d2 100 100 75The probabilities for the states of nature are P(s1) = .65, P(s2) = .15, and P(s3) = .20a) 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? Rating: 4.9/5
Solution: The following profit payoff table was presented in problems 1 and 4