Question: The following profit payoff table was presented in Problem 1. Suppose that the decision maker obtained the probability assessments P(s1) = 0.65, P(s2) = 0.15,

The following profit payoff table was presented in Problem 1. Suppose that the decision maker obtained the probability assessments P(s1) = 0.65, P(s2) = 0.15, and P(s3) = 0.20.

Use the expected value approach to determine the optimal decision.

State of Nature Decision Alternative S3 S1 S2 25 75 d, d, 100 250 d2 100 100

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