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    Payoff table - computing expected value

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    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?

    .......................State of Nature

    Alternative........S1.....S2.....S3
    A1.................$50....$70....$100
    A2...................90......40......80
    A3...................70......60......90

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    https://brainmass.com/statistics/central-tendency/payoff-table-computing-expected-value-324143

    Solution Summary

    This solution shows how to calculate the expected monetary value of each alternative and make the correct decision.

    $2.19