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The following is a payoff table giving profits for various situations. State 2 State 1 State 3 Probability 0.35 0.4 0.25 Alternative 1 52 42
The following is a payoff table giving profits for various situations. State 2 State 1 State 3 Probability 0.35 0.4 0.25 Alternative 1 52 42 75 Alternative 2 58 30 83 Alternative 3 23 55 82 Alternative 4 33 55 44 If a person were to use the expected monetary value criterion, what decision would be made? Alternative 1 Alternative 2 Alternative 3 Alternative 4
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