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    Decision theory;difference between different payoff tables

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    What is decision theory? What is the difference between a payoff table and an expected payoff table? In the following payoff table, let P(S1) = 0.30, P(S2) = 0.50, and P(S3) = 0.20. Compute the expected monetary value for each of the alternatives. What decision would you recommend?

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    What is decision theory? What is the difference between a payoff table and an expected payoff table?
    Decision theory is a methodology to determine which decision, from a set of possible decisions, is optimal. There are three components of any decision making process ...

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    This post addresses a decision theory. It shows the difference between a payoff table and an expected payoff table

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