Question: Consider the following decision table, which Dinesh Dave has developed for Laurentian Enterprises: Which decision alternative maximizes the expected value of the payoff? States of

Consider the following decision table, which Dinesh Dave has developed for Laurentian Enterprises:

States of Nature 0.40 Decision 0.40 0.20 Low Alternatives Probability: Medium High $40 $100 $60 A $ 60 $70 в $85 $ 70 $

Which decision alternative maximizes the expected value of the payoff?

States of Nature 0.40 Decision 0.40 0.20 Low Alternatives Probability: Medium High $40 $100 $60 A $ 60 $70 $85 $ 70 $60 $70 $65 $ 75 $70 D $ 65 $70 $80

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