Consider the following decision scenario: $$\begin{array} { | l | l | l | l | l | }
\hline { \text { Alternative } } & { \text { State of Nature } } & & \
\hline & \# 1 & \# 2 & \# 3 & \# 4 \
\hline \text { A } & 1 & 0 & 1 & 6 \
\hline \text { B } & 1 & 5 & 4 & 2 \
\hline \text { C } & 3 & 2 & 2 & 3 \
\hline
\end{array}$$ If you feel that P(#1) = .4, P(#2) = .3, P(#3) = .2, and P(#4) = .1, what is your expected payoff under certainty?

Question

Consider the following decision scenario: $$\begin{array} { | l | l | l | l | l | } 
\hline  { \text { Alternative } } &  { \text { State of Nature } } & & \
\hline & \# 1 & \# 2 & \# 3 & \# 4 \
  \hline \text { A } & 1 & 0 & 1 & 6 \
\hline \text { B } & 1 & 5 & 4 & 2 \
\hline \text { C } & 3 & 2 & 2 & 3 \
\hline
\end{array}$$ If you feel that P(#1) = .4, P(#2) = .3, P(#3) = .2, and P(#4) = .1, what is your expected payoff under certainty?

Quizplus · Accepted Answer

The Answer of Consider the following decision scenario: $$\begin{array} { | l | l | l | l | l | } 
\hline  { \text { Alternative } } &  { \text { State of Nature } } & & \
\hline & \# 1 & \# 2 & \# 3 & \# 4 \
  \hline \text { A } & 1 & 0 & 1 & 6 \
\hline \text { B } & 1 & 5 & 4 & 2 \
\hline \text { C } & 3 & 2 & 2 & 3 \
\hline
\end{array}$$ If you feel that P(#1) = .4, P(#2) = .3, P(#3) = .2, and P(#4) = .1, what is your expected payoff under certainty?

Consider the Following Decision Scenario If You Feel That P(#1) =