Question: PROBLEM 1. For the payoff table below, the decision maker will use the following pprobabilities for the state of nature: P(s1) = 0.15, P(s2) =

 PROBLEM 1. For the payoff table below, the decision maker will

PROBLEM 1. For the payoff table below, the decision maker will use the following pprobabilities for the state of nature: P(s1) = 0.15, P(s2) = 0.5, and P(s3) = 0.35. State of Nature Decision Alternative S1 S2 S3 d1 5,000 1,000 10,000 d2 -15,000 2,000 40,000 The decision maker expressed the following indifference probabilities. Payoff Probability 40,000- 10,000 0.85 1,000 0.60 2,000 0.53 -5,000 0.50 -15,000 Make a decision using the Expected Utility Approach. (Show your complete solution)

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