Question: Please help me solve the three questions below for each decision maker A-C Problem 13-29 (Algorithmic) Three decision makers have assessed utilities for the following
Please help me solve the three questions below for each decision maker A-C
Problem 13-29 (Algorithmic)
Three decision makers have assessed utilities for the following decision problem (payoff in dollars):
| State of Nature | |||
|---|---|---|---|
| Decision Alternative | S1 | S2 | S3 |
| d1 | 10 | 50 | -10 |
| d2 | 80 | 100 | -100 |
The indifference probabilities are as follows:
| Indifference Probability (p) | |||
|---|---|---|---|
| Payoff | Decision maker A | Decision maker B | Decision maker C |
| 100 | 1.00 | 1.00 | 1.00 |
| 80 | 0.95 | 0.80 | 0.85 |
| 50 | 0.85 | 0.70 | 0.75 |
| 10 | 0.75 | 0.55 | 0.60 |
| -10 | 0.60 | 0.25 | 0.50 |
| -100 | 0.00 | 0.00 | 0.00 |
Find a recommended decision for each of the three decision makers, if P(s1) = 0.20, P(s2) = 0.50, and P(s3) = 0.30. (Note: For the same decision problem, different utilities can lead to different decisions.) If required, round your answers to two decimal places.
| Decision maker A |
| EU(d1) = _______________ |
| EU(d2) = _______________ |
| Recommended decision: ________________ |
| Decision maker B |
| EU(d1) =_______________ |
| EU(d2) = ______________ |
| Recommended decision: __________________ |
| Decision maker C |
| EU(d1) = ________________ |
| EU(d2) = ________________ |
| Recommended decision: ______________ |
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