Given the payoff matrix below,answer the following questions:
(a)If somehow you find out for certain that state of nature #4 is going to occur,which alternative will you select?
(b)If you feel that P(#1)= .4,P(#2)= .3,P(#3)= .2,and P(#4)= .1,
(i)What is your expected payoff under certainty?
(ii)Which alternative has the highest expected monetary value?
(iii)What is your expected value of perfect information?

Question

Given the payoff matrix below,answer the following questions:
  (a)If somehow you find out for certain that state of nature #4 is going to occur,which alternative will you select?
(b)If you feel that P(#1)= .4,P(#2)= .3,P(#3)= .2,and P(#4)= .1,
(i)What is your expected payoff under certainty?
(ii)Which alternative has the highest expected monetary value?
(iii)What is your expected value of perfect information?

Quizplus · Accepted Answer

The Answer of Given the payoff matrix below,answer the following questions:
  (a)If somehow you find out for certain that state of nature #4 is going to occur,which alternative will you select?
(b)If you feel that P(#1)= .4,P(#2)= .3,P(#3)= .2,and P(#4)= .1,
(i)What is your expected payoff under certainty?
(ii)Which alternative has the highest expected monetary value?
(iii)What is your expected value of perfect information?

Given the Payoff Matrix Below,answer the Following Questions