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Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision Alternative Si S2 S3 30 50 -30
Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision Alternative Si S2 S3 30 50 -30 di dz 70 110 -90 The indifference probabilities are as follows: Indifference Probability (p) Decision maker B Payoff Decision maker A Decision maker C 110 1.00 1.00 1.00 70 0.95 0.80 0.85 50 0.85 0.70 0.75 30 0.75 0.55 0.60 -30 0.60 0.25 0.50 -90 0.00 0.00 0.00 Find a recommended decision for each of the three decision makers, if P(51) = 0.20, P(52) = 0.65, and P(53) = 0.15. (Note: For the same decision problem, different utilities can lead to different decisions.) If required, round your answers to two decimal places. Decision maker A EU(d) = EU(D2) = Recommended decision: = Decision maker B EU(d) = 1 EU(da) Recommended decision: = Decision maker C EU(d) = EU(02) = Recommended decision: Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision Alternative Si S2 S3 30 50 -30 di dz 70 110 -90 The indifference probabilities are as follows: Indifference Probability (p) Decision maker B Payoff Decision maker A Decision maker C 110 1.00 1.00 1.00 70 0.95 0.80 0.85 50 0.85 0.70 0.75 30 0.75 0.55 0.60 -30 0.60 0.25 0.50 -90 0.00 0.00 0.00 Find a recommended decision for each of the three decision makers, if P(51) = 0.20, P(52) = 0.65, and P(53) = 0.15. (Note: For the same decision problem, different utilities can lead to different decisions.) If required, round your answers to two decimal places. Decision maker A EU(d) = EU(D2) = Recommended decision: = Decision maker B EU(d) = 1 EU(da) Recommended decision: = Decision maker C EU(d) = EU(02) = Recommended decision
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