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(a) Suppose P(s1)=0.2 and P(s2)=0.8. What is the best decision using the expected value approach? The best decision is with an expected value of As
(a) Suppose P(s1)=0.2 and P(s2)=0.8. What is the best decision using the expected value approach? The best decision is with an expected value of As long as the payoff for s1 under d1 is -- ?- V, then the solution found in part (a) will be optimal. As long as the payoff for s2 under d1 is , then the solution found in part (a) will be optimal. Is the solution more sensitive to the payoff under state of nature s1 or s2
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