TABLE 17-2
The following payoff matrix is given in dollars.
$\quad $ $\quad $ $\quad $ $\quad $ $\text {Action }$
$\begin{array} { c c c }
\text { Event }& A & B \
\hline1 & 400 & 700 \
2 & 200 & 500
\end{array}$

Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5.
-Referring to Table 17-2, what is the EOL for Action A?
A) 200
B) 300
C) 0
D) 100

Question

TABLE 17-2
The following payoff matrix is given in dollars.
 $\quad $ $\quad $ $\quad $ $\quad $ $\text {Action }$
$\begin{array} { c c c } 
\text { Event }& A  & B \
\hline1 & 400 & 700 \
2 & 200 & 500
\end{array}$

Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5.
-Referring to Table 17-2, what is the EOL for Action A?
A) 200
B) 300
C) 0
D) 100

Quizplus · Accepted Answer

The EOL for Action A is the expected value of the payoff for Action A, which is calculated as the sum of the products of the payoffs and the probabilities of the events. In this case, the EOL for Action A is (400 * 0.5) + (200 * 0.5) = 300.

TABLE 17-2 the Following Payoff Matrix Is Given in Dollars \quad

TABLE 17-2
the Following Payoff Matrix Is Given in Dollars $\quad$