• For the payoff table below, the decision maker will use P(s₁) = .15, P(s₂) = .5, and P(s₃) =

.35.

	s1	s2	s3
d1	-5000	1000	10,000
d2	-15,000	-2000	40,000

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	.60
-2000	.53
-5000	.50

Let U(40,000) = 10 and U(-15,000) = 0 and find the utility value for each payoff.

What alternative would be chosen according to expected utility?