Question: Use Payoff Table 1 for Problems 1, 2, and 3. Decision Alternative High Meduim Low Aggressive Growth 250 100 25 Conservative Fund 100 100 75
Use Payoff Table 1 for Problems 1, 2, and 3.
Decision Alternative High Meduim Low
Aggressive Growth 250 100 25
Conservative Fund 100 100 75
- Given the data in Payoff Table number #1, you need to test the sensitivity of your results.To this you adjust the probabilities from problem #2 to the following.
- P(s1) = .60, P(s2) = .15 and P(s3) = .25.
- P(s1) = .70, P(s2) = .20 and P(s3) = .10.
- P(s1) = .65, P(s2) = .20 and P(s3) = .15
- P(s1) = .65, P(s2) = .10 and P(s3) = .25
Recalculate the expected values for each alternative.Does this change the results of your original decision?Explain your answers.
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