Question: what is the first increment??? need excel work for this part of the question Perform sensitivity analysis on the payoffs for decision alternative d 1
what is the first increment???
need excel work for this part of the question
| Perform sensitivity analysis on the payoffs for decision alternative d1. Assume the probabilities are as given in part (a), and find the range of payoffs under states of nature s1 and s2 that will keep the solution found in part (a) optimal. Is the solution more sensitive to the payoff under state of nature s1 or s2? Round your answer in two decimal places. | |
| The solution is more sensitive to - Select your answer -s1s2Item 3 , as an increment of for d1(s2) causes a break even between the decision alternatives, whereas it takes an increment of , to provide the same effect for d1(s1). |
eBook The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives State of Nature Decision Alternative S1 S2 di 10 1 d2 (a) Suppose Ps1)-0.2 and P(s2)-0.8. What is the best decision using the expected value approach? Round your answer in one decimal place. ,with an expected value of The best decision is decision alternative d2 (b) Perform sensitivity analysis on the payoffs for decision altenative di. Assume the probabilities are as given in part (a), and find the range of payoffs under states of nature s1 and 52 that will keep the solution found in part (a) optimal. Is the solution more sensitive to the payoff under state of nature si or s2? Round your answer in two decimal places , as an increment o tor h(6) causes a break even between the decison alternatives, whereas it takes an incre The solution is more sensitive to s2 1, to provide the same effect for d(51 of Hide Feedback
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