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

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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?

 

Paper#60948 | Written in 18-Jul-2015

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