Question12: In the given payments matrix, the earnings that a business can obtain with different distribution strategies (S1, S2, S3) are given. The probabilities of the natural states are respectively; P(Q1)=0.2, P(Q2)=0.4, P(Q3)=0.4. 1-) What is the expected payment when the information is not received? 2-) What is the expected payment when the information is received? 3-) What is the expected value of additional information?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Question12: In the given payments matrix, the earnings that a business can obtain with different distribution strategies (S1, S2, S3) are given.
The probabilities of the natural states are respectively; P(Q1)=0.2, P(Q2)=0.4, P(Q3)=0.4.
1-) What is the expected payment when the information is not received?
2-) What is the expected payment when the information is received?
3-) What is the expected value of additional information?
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