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Suppose we are interested in investing in one of three investment opportunities: d1, d2, or d3. The following profit payoff table shows the profits (in
Suppose we are interested in investing in one of three investment opportunities: d1, d2, or d3. The following profit payoff table shows the profits (in thousands of dollars) under each of the 3 possible economic conditions: 51.52 and 53 States of Nature Decision Alternative si S2 53 38 28 28 dz 80 60 -10 dz 15 40 16 Assume the states of nature have the following probabilities: P(51) = 0.2, P(-2) = 0.3, P(53) = 0.5. Which decision alternative is best? di di O da dz They are all equal
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