Question: 4. Consider the following utility table together with Case-1 and Case-2. Alternatives A1 A2 States of Nature S1 S2 9000 -2000 3000 1000 Probability 0.7

4. Consider the following utility table together

4. Consider the following utility table together with Case-1 and Case-2. Alternatives A1 A2 States of Nature S1 S2 9000 -2000 3000 1000 Probability 0.7 0.3 Case 1: The decision maker is indifferent between the following alternatives. Alternative 1: Receive 3000 with certainty. Alternative 2: Receive 9000 with probability of 0.8, lose 2000 with probability of 0.2. Case 2: The decision maker is indifferent between the following alternatives. Alternative 1: Receive 1000 with certainty. Alternative 2: Receive 9000 with probability of 0.6, lose 2000 with probability of 0.4. a. Construct the utility table using 0 and 1 for endpoint utility values. (5P) b. Find the alternative to choose using utility values. (5P)

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