Suppose the probabilities of the states of nature occurring for Problem 19.5 are s₁ = 0.15, s₂ = 0.25, s₃ = 0.30, s₄ = 0.10, and s₅ = 0.20. Use these probabilities and EMVs to reach a conclusion about the decision alternatives in Problem 19.5.

Data from problem 19.5

Use the following decision table to construct a decision tree.

Transcribed Image Text:

d₁ Decision d₂ Alternative d3 $1 50 75 15 State of Nature $2 20 50 12 $3 15 20 10 S4 55∞0 -5 8 $5 1 -20 6