Essentials of Business Analytics 1st Edition by Jeffrey Camm,James Cochran,Michael Fry,Jeffrey Ohlmann ,David Anderson

تمرين 18

The following profit payoff table was presented in Problem 1:

The probabilities for the states of nature are P ( s 1 ) = 0.65, P ( s 2 ) = 0.15, and P ( s 3 ) = 0.20.
a. What is the optimal decision strategy if perfect information were available
b. What is the expected value for the decision strategy developed in part a
c. Using the expected value approach, what is the recommended decision without perfect information What is its expected value
d. What is the expected value of perfect information