Question: Use graphical sensitivity analysis to determine the range of values of the probability of state of nature s 1 over which each of the decision

Use graphical sensitivity analysis to determine the range of values of the probability of state of nature s1 over which each of the decision alternatives has its largest expected value.

Demand

Alternative

Strong(S1)

Weak(S2)

Version1(d1)

40

-15

Version2(d2)

30

40

Version3(d3)

10

60

What is the expected value of decision d1 in term of p?

A.

EVd1 = 40 p - 15

B.

EVd1 = 55 p - 15

C.

EVd1 = -15 p - 40

D.

EVd1 = 55 - 15 p

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