Question: Consider the following pay-off table where the rows (D1, D2, D3) represent the decisions and the columns (E1, E2, E3) represent the events. The probability
Consider the following pay-off table where the rows (D1, D2, D3) represent the decisions and the columns (E1, E2, E3) represent the events. The "probability" row provides the probability of each event happening. A negative value means a loss. Also, the D1-E1 and D3-E1 pay-offs are hidden.
| E1 | E2 | E3 | |
| D1 | XXX | 500 | 1200 |
| D2 | 200 | 400 | 300 |
| D3 | YYY | 600 | 400 |
| Probability | 0.3 | 0.5 | 0.2 |
Using the expected value approach, the optimal decision would be _________ if XXX is _____ and YYY is ___
D3, 0, 350
D2, -500, -200
D1, -600, -300
D1, -400, 0
D3, -200, 200
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