We mentioned that the probabilities associated with any risk profile must sum to one. To see why,
Question:
We mentioned that the probabilities associated with any risk profile must sum to one. To see why, let's consider the decision modeled in Figure 4.45.Because each uncertainty P, Q, R, and T are probability distributions, we must have:
Show that the nine end-node probability values p1r1, p1r2, p1r3, p2q1, p2q2, p2q3, p3t1, p3t2, and p3t3 sum to one.
Figure 4.45
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Making Hard Decisions with decision tools
ISBN: 978-0538797573
3rd edition
Authors: Robert Clemen, Terence Reilly
Question Posted: