Purchase Solution

Decision Tree

Not what you're looking for?

Ask Custom Question

(See attached file for full problem description)

---
The following cost table is associated with a decision:

States of Nature
Decision Options S1 S2 S3
A 200 100 50
B 125 110 80
C 100 130 90

The probabilities of the states of nature are P1 = 0.55, P2 = 0.25, P3 = 0.20
a. Lay out the decision tree
b. What is the expected value of the best decision?
c. What is the expected value of perfect information?

Attachments
Purchase this Solution

Purchase this Solution


Free BrainMass Quizzes
Probability Quiz

Some questions on probability

Graphs and Functions

This quiz helps you easily identify a function and test your understanding of ranges, domains , function inverses and transformations.

Solving quadratic inequalities

This quiz test you on how well you are familiar with solving quadratic inequalities.

Know Your Linear Equations

Each question is a choice-summary multiple choice question that will present you with a linear equation and then make 4 statements about that equation. You must determine which of the 4 statements are true (if any) in regards to the equation.

Multiplying Complex Numbers

This is a short quiz to check your understanding of multiplication of complex numbers in rectangular form.