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Exhibit 20-2 Below is a payoff table involving three states of nature and two decision alternatives. Decision States of Nature Alternative s 1 s 2
Exhibit 20-2 Below is a payoff table involving three states of nature and two decision alternatives.
Decision | States of Nature | ||
Alternative | s1 | s2 | s3 |
A | 80 | 45 | -20 |
B | 40 | 50 | 15 |
P(s1) = .1, P(s2) = .6, and P(s3) = .3. Refer to Exhibit 20-2. The expected value of the best alternative equals _____.
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