Question
The following figure shows a payoff table for a decision-making situation with two possible decisions and three states of nature. The payoffs for decision D2
The following figure shows a payoff table for a decision-making situation with two possible decisions and three states of nature. The payoffs for decision D2 are the same regardless of the state of nature.
0.25 0.50 0.25
SN1 SN2 SN3
D1 10 100 60
D2 X X X
a)What range of values for the X payoff would make D2 superior to D1 under the EMV criterion?
b)What range of values for the X payoff would make D2 superior to D1 under the Maximax criterion?
c)What range of values for the X payoff would make D2 superior to D1 under the Maximin criterion?
d)What range of values for the X payoff would render the EVPI equal to zero?
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