We mentioned that the probabilities associated with any risk profile must sum to one. To see why,

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We mentioned that the probabilities associated with any risk profile must sum to one. To see why, let's consider the decision modeled in Figure 4.45.Because each uncertainty P, Q, R, and T are probability distributions, we must have:

Show that the nine end-node probability values p1r1, p1r2, p1r3, p2q1, p2q2, p2q3, p3t1, p3t2, and p3t3 sum to one.

Figure 4.45

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Making Hard Decisions with decision tools

ISBN: 978-0538797573

3rd edition

Authors: Robert Clemen, Terence Reilly

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Question Posted: Dec 22, 2015 01:58 AM

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We mentioned that the probabilities associated with any risk profile must sum to one. To see why,

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l: and 1

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This is an algebra problem We are given pp2p31 91q2q31 r1tr...View the full answer

Making Hard Decisions with decision tools

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