For the below payoff table, if P(S1) = 0.3, P(S2) = 0.5 and P(S3) = 0.2, what decision would you recommend?
A) Go with Alternative A. It has an expected payoff of $63.
B) Go with Alternative B. It has an expected payoff of $72.
C) Go with Alternative C. It has an expected payoff of $63.

Question

For the below payoff table, if P(S1) = 0.3, P(S2) = 0.5 and P(S3) = 0.2, what decision would you recommend? 
A) Go with Alternative A. It has an expected payoff of $63. 
B) Go with Alternative B. It has an expected payoff of $72. 
C) Go with Alternative C. It has an expected payoff of $63.

Quizplus · Accepted Answer

Go with Alternative B. It has an expected payoff of $72.

For the Below Payoff Table, If P(S1) = 0