The following payoff table shows the profit for a decision problem with three states of nature and two decision alternatives:
State of Nature
DA s1 s2 s3
d1 -20 40 100
d2 10 45 70
I need to state of nature probabilities are: P(s1) = 0.35, P(s2) = 0.35 and P(s3) = 0.30.
a. Use a decision tree to recommend a decision.
b. Use the expected value to recommend a decision.© BrainMass Inc. brainmass.com June 3, 2020, 6:57 pm ad1c9bdddf
Decision tees and payoff tables are investigated. The solution is detailed and well presented.