Share
Explore BrainMass

Probability

Given the following table of payoffs use sensitivity analysis to determine at what probability or more you would select decision 3.

s1 s2
d1 8 10

d2 2 15

d3 10 3

a none of the choices are correct

b .5798

c .5454

d.4545

e .7778

Solution Preview

The answer is e) 0.7778. We can do calculations as follows. Suppose that we know that P(S1)=p, and P(S2)=1-p. The the expected values ...

Solution Summary

The solution answers the question below.

$2.19