Data in the matrix below indicates COST expected from 3 alternatives under 4 states of nature. Determine which alternative is dominant using With and Without Probability (use a = 0.3 and probability of: 30%; 20%; 40% & 10% for S1, S2, S3, and 54 respectively): Which alternative is best using Expected Value? S1 53 S4 10 15 12 20 15 25 Alternatives A1 A2 A3 S2 20 15 18 18 25 19

Data in the matrix below indicates COST expected from 3 alternatives under 4 states of nature. Determine which alternative is dominant using With and Without Probability (use a = 0.3 and probability of: 30%; 20%; 40% & 10% for S1, S2, S3, and 54 respectively): Which alternative is best using Expected Value? S1 53 S4 10 15 12 20 15 25 Alternatives A1 A2 A3 S2 20 15 18 18 25 19

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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