The following payoff table shows profits for two decision alternatives under three different states of nature. It is known that the probability of the occurrence of state of nature 1 is 0.1.
a.What should the probabilities of states of nature 2 and 3 be so that the expected values of the two decision alternatives equal one another?
b.Determine the expected values.

Question

The following payoff table shows profits for two decision alternatives under three different states of nature. It is known that the probability of the occurrence of state of nature 1 is 0.1.  
a.What should the probabilities of states of nature 2 and 3 be so that the expected values of the two decision alternatives equal one another?
b.Determine the expected values.

Quizplus · Accepted Answer

The Answer of The following payoff table shows profits for two decision alternatives under three different states of nature. It is known that the probability of the occurrence of state of nature 1 is 0.1.  
a.What should the probabilities of states of nature 2 and 3 be so that the expected values of the two decision alternatives equal one another?
b.Determine the expected values.

The Following Payoff Table Shows Profits for Two Decision Alternatives