The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature:State of NatureDecision Alternative S1S2 S3di250 100 100d2200 100 150The probabilities for the states of nature are P(s1) = 0.45, P(s2) = 0.25, and P(53) = 0.3.(a) What is the optimal decision strategy if perfect information were available?S1 : - Select your answer - VS2Select your answer -S3 : - Select your answer - V(b) What is the expected value for the decision strategy developed in part (a)? If required, round your answer to one decimal place.(c) Using the expected value approach, what is the recommended decision without perfect information?- Select your answer - vWhat is its expected value? If required, round your answer to one decimal place.(d) What is the expected value of perfect information? If required, round your answer to one decimal place.

a) If perfect information was available, the optimal decision strategy is:…

The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: State of Nature Decision Alternative S1 S2 S3 di 250 100 100 dz 200 100 150 The probabilities for the states of nature are P(s1) = 0.45, P(s2) = 0.25, and P(s3) = 0.3. (a) What is the optimal decision strategy if perfect information were available? Si : - Select your answer - S2 : - Select your answer S3 : Select your answer - (b) What is the expected value for the decision strategy developed in part (a)? If required, round your answer to one decimal place. (c) Using the expected value approach, what is the recommended decision without perfect information? - Select your answer - v What is its expected value? If required, round your answer to one decimal place. (d) What is the expected value of perfect information? If required, round your answer to one decimal place.

The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: State of Nature Decision Alternative S1 S2 S3 di 250 100 100 dz 200 100 150 The probabilities for the states of nature are P(s1) = 0.45, P(s2) = 0.25, and P(s3) = 0.3. (a) What is the optimal decision strategy if perfect information were available? Si : - Select your answer - S2 : - Select your answer S3 : Select your answer - (b) What is the expected value for the decision strategy developed in part (a)? If required, round your answer to one decimal place. (c) Using the expected value approach, what is the recommended decision without perfect information? - Select your answer - v What is its expected value? If required, round your answer to one decimal place. (d) What is the expected value of perfect information? If required, round your answer to one decimal place.

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter9: Counting And Probability

Section9.4: Expected Value

Problem 1E: If a game gives payoffs of $10 and $100 with probabilities 0.9 and 0.1, respectively, then the...

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If a game gives payoffs of $10 and $100 with probabilities 0.9 and 0.1, respectively, then the expected value of this game is E=0.9+0.1= .
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