Question: For the payoff table in Exercise 13, find the action with the highest expected value. In exercise a) If forecasters think the probability of rising

For the payoff table in Exercise 13, find the action with the highest expected value.
In exercise

a) If forecasters think the probability of rising consumer confidence is 0.70, what is its expected value?
b) What action would have the highest expected value if they think the probability of rising consumer confidence is only 0.40?

Consumer Confidence Rising Falling Prime Time Ad $20.00 $2.00 Marketing Direct Mail Piece $10.00 15.00 5 Targeted Web E 12.00 $10.00

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