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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
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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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