Question: Just need help with part B and D please. The following payoff table shows profit for a decision analysis problem with two decision alternatives and
Just need help with part B and D please.
The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. States of Nature Decision Alternative si S2 S3 di 240 90 15 d2 90 90 65 The probabilities for the states of nature are P(S1) = 0.65, P(S2) = = 0.15, and P(sz) = 0.20. (a) What is the optimal decision strategy if perfect information were available? If S, then d. ; If s2 then d, or d, ; If sz then a (b) What is the expected value for the decision strategy developed in part (a)? 172.5 x (c) Using the expected value approach, what is the recommended decision without perfect information? What is its expected value? The recommended decision without perfect information is d. EV = 172.5 (d) What is the expected value of perfect information? EVPI = 85
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