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Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision Alternative S 1 S 2 S 3

  1. Three decision makers have assessed utilities for the following decision problem (payoff in dollars):

    State of Nature
    Decision Alternative S1 S2 S3
    d1 10 50 -20
    d2 90 110 -100

    The indifference probabilities are as follows:

    Indifference Probability (p)
    Payoff Decision maker A Decision maker B Decision maker C
    110 1.00 1.00 1.00
    90 0.95 0.80 0.85
    50 0.85 0.70 0.75
    10 0.75 0.55 0.60
    -20 0.60 0.25 0.50
    -100 0.00 0.00 0.00

    Find a recommended decision for each of the three decision makers, if P(s1) = 0.20, P(s2) = 0.60, and P(s3) = 0.20. (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(d1) = ?
    EU(d2) = ?
    Recommended decision:

    d2

    Decision maker B
    EU(d1) = ?
    EU(d2) = ?
    Recommended decision:

    d2

    Decision maker C
    EU(d1) = ?
    EU(d2) = ?
    Recommended decision:

    d2

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