Question: A cost payoff table is given as Cost Payoff Table State of Nature Decision s1 s2 dl 1074 503 409 396 d3 718 654 s3

A cost payoff table is given as Cost Payoff Table

A cost payoff table is given as Cost Payoff Table State of Nature Decision s1 s2 dl 1074 503 409 396 d3 718 654 s3 432 284 592 e. What is the EVPI? (3 marks) f. If the conditional probabilities obtained from sample information / are PCI | Su=0.1, PCI S2)= 0.05, PCI (33)=0.2, compute the revised or posterior probabilities Psi (1), P(s1) and P(s: 11). (4 marks) g. Compute expected values for each decision using the revised probabilities, obtained from part f. What choice should be made? (2 marks) HINT: You must show all computations in detail

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