Question: Problem 13-29 Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision Alternative S1 S2 S3 d

Problem 13-29 Three decision makers have assessed

Problem 13-29 Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision Alternative S1 S2 S3 d 1 20 50 -20 d 2 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 0.70 0.90 50 0.90 0.60 0.75 20 0.70 0.45 0.60 -20 0.50 0.25 0.40 -100 0.00 0.00 0.00 Find a recommended decision for each of the three decision makers, if P(51) = 0.25, P(52) = 0.50, and P(53) = 0.25. (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(02) = Recommended decision

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