Payoff of three Acts A, B, C and D and the states of nature P, Q, R are States of nature Payoffs Acts A в C - 35 120 - 100 Q 250 - 350 200 R 550 650 700 The probability of the states of nature are 0.5, 0.1 and 0.4 respectively. Tabulate the Expected Monetary values for the above data and state which can be chosen as the best act ?

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 29E
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Payoff of three Acts A, B, C and D and the
states of nature P, Q, R are
States of nature
Payoffs
Acts
A
в
- 35
120
- 100
Q
250
- 350
200
R
550
650
700
The probability of the states of nature are 0.5, 0.1 and 0.4 respectively. Tabulate the Expected
Monetary values for the above data and state which can be chosen as the best act ?
Transcribed Image Text:Payoff of three Acts A, B, C and D and the states of nature P, Q, R are States of nature Payoffs Acts A в - 35 120 - 100 Q 250 - 350 200 R 550 650 700 The probability of the states of nature are 0.5, 0.1 and 0.4 respectively. Tabulate the Expected Monetary values for the above data and state which can be chosen as the best act ?
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