States of Nature Decision Alternative Si 52 53 54 d. 12 8 3 d2 8 6 5 d3 7. co d4 6 co 9 The decision maker obtains information that enables the following probabilities assessments: Pl_) 0.5, PS2) - 0.2. Psy) = 0:2, and ) = 0.1. (a) Use the expected value approach to determine the optimal dedsion. EV(d) EV(d) EV(d) EVO The optimal decision is (b) Now assume that the entries in the payoff table are costs. Use the expected value approach to determine the optimal decision The optimal decision