Question: Pls show the formula Question Set 2. This question set uses the table of outcomes from Question Set 1 for Googles strategies. Assume that the

Pls show the formula

Question Set 2. This question set uses the table of outcomes from Question Set 1 for Googles strategies. Assume that the probabilities for scenarios are:

Pls show the formula Question Set 2. This

  • P(Scenario 1) = 0.2
  • P(Scenario 2) = 0.3
  • P(Scenario 3) = 0.3
  • P(Scenario 4) = 0.2

1. What decision will maximize Googles expected monetary value? (9pts)

2. What is the expected value of perfect information? (6pts)

G10 Xfx =MAX(G4:38) A B D D E F G H 1 K 1 2 3 4 4 5 6 7 DECREASE DEPTH SMALLER BATTERY MIXED LARGER BATTERY NO CHANGE 1 1 -70 -65 -60 -50 -50 2 -30 -40 -35 -35 3 50 35 30 25 30 55 45 60 50 30 MAX 55 45 60 50 30 MIN -70 -65 -60 -50 LAPLACE 1.25 -6.25 -1.25 -2.5 -8.75 -45 -50 8 9 10 11 60 -50 1.25 12 13 14 15 16 BY MAXIMAX WE WILL CHOOSE THE 60 FOR MIXED BY MAXIMIN WE WILL CHOOSE THE-50 FOR LARGER BATTERY OR NO CHANGE BY LAPLACE WE WIL CHOOSE THE 1.25 FOR DECREASE DEPTH 17 18 19 20 IV) G25 . MIN(G19:G23) B D E F G H 1 K K M N O 1 1 2 3 3 4 5 6 7 3 3 50 MIN -70 -30 40 35 -65 DECREASE DEPTH SMALLER BATTERY MIXED LARGER BATTERY NO CHANGE 1 1 -70 65 -60 -50 -50 4 4 55 45 60 SO 30 MAX 55 45 60 SO 30 LAPLACE 1.25 -6.25 -1.25 245 -8.75 -35 -35 -45 30 25 30 -60 -50 -50 60 -50 1.25 9 10 11 12 BY MAXIMAX WE WILL CHOOSE THE 60 FOR MIXED BY MAXIMIN WE WILL CHOOSE THE-50 FOR LARGER BATTERY OR NO CHANGE BY LAPLACE WE WIL CHOOSE THE 1.25 FOR DECREASE DEPTH 13 14 15 16 17 18 19 20 21 22 23 24 25 26 DECREASE DEPTH SMALLER BATTERY MIXED LARGER BATTERY NO CHANGE 1 20 15 10 0 0 2 15 5 10 10 O 3 3 0 15 20 25 20 4 5 15 0 10 30 MAX 20 15 20 25 30 BY MINMAX REGRET WE WILL CHOOSE SMALLER BATTERY WITH A VALUE OF 15 15

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