Advertising strategies decisions. For the payoff table in Exercise 17, find the action with the highest expected

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Advertising strategies decisions. For the payoff table in Exercise 17, find the action with the highest expected value.

a) If forecasters think the probability of rising consumer confidence is 0.70, what is its expected value?

b) What action would have the highest expected value if they think the probability of rising consumer confidence is only 0.40?

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Ali Khawaja

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