The following is a payoff table giving profits for various situations. The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a person selected Alternative 1, what would the expected profit be?
A) 120
B) 133.33
C) 126
D) 180
E) None of the above

Question

The following is a payoff table giving profits for various situations.  The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a person selected Alternative 1, what would the expected profit be?
A) 120 
B) 133.33 
C) 126 
D) 180 
E) None of the above

Quizplus · Accepted Answer

The Answer of The following is a payoff table giving profits for various situations.  The probabilities for states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a person selected Alternative 1, what would the expected profit be?
A) 120 
B) 133.33 
C) 126 
D) 180 
E) None of the above

The Following Is a Payoff Table Giving Profits for Various