Question

For the example in Simple Decision Problem.xlsx, we found that decision D3 is the EMV-maximizing decision for the given probabilities. See whether you can find probabilities that make decision D1 the best. If the probabilities in row 10 (for D2) are the same as the probabilities in row 11 (for D3), is it possible for D2 to be the best decision? What if these two rows are allowed to be different? Qualitatively, how can you explain the results? That is, which types of probabilities tend to favor the various decisions?



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  • CreatedApril 01, 2015
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