Question: A payoff table (the payoffs are profits) is given as State of Nature Decision s 1 s 2 s 3 d 1 15 11 9

A payoff table (the payoffs are profits) is given as

State of Nature

Decision

s1

s2

s3

d1

15

11

9

d2

11

20

5

d3

15

12

11

If the probabilities of s1, s2, and s3 are .3, .35, and .35, respectively, then what decision should be made under expected value?

d1

A three way tie

d2

d1 or d2

d1 or d3

d2 or d3

d3

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