Question: QUESTION 6: Expected value Applied to Business Application Consider the following payoff table. 5 points) Farno Decision di d2 dz S1 250 300 500 State

QUESTION 6: Expected value Applied to Business Application Consider the following payoff table. 5 points) Farno Decision di d2 dz S1 250 300 500 State of Nature 52 750 -250 500 53 500 1200 600 a What choice should be made by the optimistic decision maker? If the probabilities of di, d2, and d3 are 2, 5, and 3, respectively, then what choice should be made under expected value? b

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