Question

Question 13 5 pts A payoff table is given below and the probabilities of S1, S2, and Sg are 0.20,0.50, and 0.30, respectively. Using the table below, what is the expected value without perfect information? States of Nature Decision 1 2 3 А 250 750 500 B 300 -250 1200 с 500 500 O 835 295 575 O 260 530

Answer 1

Question 13 Here given the table with probabilities states of Nature Decision si S2 S3 А 250 750 500 B 200 - 250 1200 500 500 600 0.2 0.5 0.3 Emv = Expected monitary value. Now) Emy CA) = 0.2(250)+0.5C750)+ 0:3(500) 575 .:. EmVCA) = 575 EDV CB) = 0.20300) - 0.50250) +0.3C1200) = 295 EMVCA= 295 . Emvcc) = 0.26500) +0:5(500) +0:3 (600) 530 : . Emov CC) = 530 -

NOW, Expected value withocet peo feet in foo m cetionc EV WOPI) = max (EMU) = 575 .:. Ex peeted value without perfect information is 575 Ans: 575