A decision maker who is considered to be a risk taker is faced with this set of probabilities and payoffs.
State of Nature
Decision s1 s2 s3
d1 5 10 20
d2 -25 0 50
d3 -50 -10 80
probability 0.30 0.35 0.35
Rank the decision alternatives on the basis of expected value.
This solution is comprised of a detailed explanation of the various aspects of Decision Analysis as it pertains to the given problem and provides students with a clear perspective of the calculations and underlying concepts.