SCENARIO 20-2
The following payoff matrix is given in dollars.

Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5.
-Referring to Scenario 20-2,the expected profit under certainty (EPUC )is
A)0
B)300
C)500
D)600

Question

SCENARIO 20-2
The following payoff matrix is given in dollars.

Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5.
-Referring to Scenario 20-2,the expected profit under certainty (EPUC )is
A)0 
B)300 
C)500 
D)600

Quizplus · Accepted Answer

The expected profit under certainty (EPUC) is the profit that would be achieved if the decision-maker had perfect information about which state of nature would occur. In this scenario, the maximum profit achievable is 600.

SCENARIO 20-2 The Following Payoff Matrix Is Given in Dollars