Question: 1. (5 points) For the payoff table below, the decision maker will use P(s,) = .15, P(s,) = .5, and P(s;) = State of Nature

1. (5 points) For the payoff table below, the decision maker will use P(s,) = .15, P(s,) = .5, and P(s;) = State of Nature Decision S- -5000 1000 10,000 d- -00,000 -0000 40,000 a. What alternative would be chosen according to expected value? b. For a lottery having a payoff of 40,000 with probability p and -15,000 with prc Payoff Probability 10,000 0.85 1000 0.6 -0000 0.53 -0000 0.5 Let U(40,000) = 10 and U(-15,000) = 0 and find the utility value for each payc C. What alternative would be chosen according to expected utility

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