Question: Exhibit 20-2 Below is a payoff table involving three states of nature and two decision alternatives. Decision States of Nature Alternative s 1 s 2

Exhibit 20-2 Below is a payoff table involving three states of nature and two decision alternatives.

Decision States of Nature
Alternative s1 s2 s3
A 80 45 -20
B 40 50 15

P(s1) = .1, P(s2) = .6, and P(s3) = .3. Refer to Exhibit 20-2. The expected value of the best alternative equals _____.

a. 29
b. 38.5
c. 105
d. 12

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