Question: For the payoff table below, the decision maker will use P(s) = 15, P(52) = 5, and Pss) = .35. What is the most you

most you would pay for a highly reliable forecast? State of Nature

For the payoff table below, the decision maker will use P(s) = 15, P(52) = 5, and Pss) = .35. What is the most you would pay for a highly reliable forecast? State of Nature Decision S1 52 53 di -5,000 1,000 10,000 d2 - 15,000 -2,000 40,000 O 3000 O 10750 O 13750 0 7750 w O 7325 Use graphical sensitivity analysis to determine at what probability you are indifferent to di and d2? State of Nature Decision 51 S2 di 8 10 d2 4 16 dy 10 O 60% 83% O 72% o 25% 27%

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