1.

The following payoff table consists of profits ($'000) a company will earn based on their choice from alternatives di, de, da, and di and the resulting state of nature ($1, $2, or $3). P($1) = 0.4 and P($2) = 0.2. 51 d1 -13 35 31 1 24 34 da 5 29 23 -10 20 26 a) What is the expected value of dj ? Round to the nearest dollar. b) What is the expected value of the optimal decision? Round to the nearest dollar. c) What is the optimal decision based on expected values? di d2 d3 d4 81 82 83 0 0 0 0 0 0 0Use the payoff table below to answer the questions that follow. Payoffs represent profits, in dollars, and the probabilities of the states of nature are given in the table. 83 d1 3200 2350 -800 d2 3050 2150 -1000 d3 3000 2600 -1050 2900 2550 -950 Probability 0.1 0.4 0.5 a) What is the expected value of the optimal decision? b) What is the expected value with perfect information (EVwithPI)? c) What is the expected value of perfect information (EVPI)?Use the given decision tree to answer the questions that follow. Payoffs are profits/losses. 81 (0.78) $7,200 -$1,300 $5,300 B $5,400 a a) The expected value at node A, EV(A) = $ b) The expected value at node B, EV (B) = $ 000 c) The expected value at node c, EV(C) = $