Question: 7. In Exercise 2, find the expected payoff and the expected loss of each action, and find the action which has the largest expected payoff

7. In Exercise 2, find the expected payoff and the expected loss of each action, and find the action which has the largest expected payoff and smallest ex¬

pected loss, given that the probabilities of the various states of the world are P(A) = .10, P(B) = .20, P(C) = .25, P{D) = .10, and P(E) = .35.

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