Question: 7/Consider the following payoff table that represents the profits earned for each alternative (A, B, and C) under the states of nature S1, S2, and

7/Consider the following payoff table that represents the profits earned for each alternative (A, B, and C) under the states of nature S1, S2, and S3.

S1 S2 S3

A $60 $145 $120 B $75 $125 $110

C $95 $85 $130

Refer to the payoff table. Using the expected monetary value (EMV) criterion, what is the highest attainable expected profit? Assume P(S1) = 0.5 and P(S2) = 0.25.

	a.	$101.25
	b.	$125
	c.	$103.33
	d.	$108.33

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