# Payoff table - computing expected value

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

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