Question: For the payoff table below, the decision maker will use P(51) - 2, P(52) 5, and P(53) = 3. State of Nature Decision 52 33

For the payoff table below, the decision maker will use P(51) - 2, P(52) 5, and P(53) = 3. State of Nature Decision 52 33 di --5000 1000 10,000 d2 -15,000 -2000 40,000 51 a. What alternative would be chosen according to expected value? For a lottery having a payoff of 40,000 with probability p and -15,000 with probability (1 - p), the decision maker expressed the following indifference probabilities. Payoff Probability 10,000 .85 1000 - 2000 .53 --5000 .50 .60 Let U (40,000) = 10 and U(-15,000) = 0 b. Complete the utility table. C. What alternative would be chosen according to expected utility

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