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Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision S S 53 Alternative d 30 60
Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision S S 53 Alternative d 30 60 -30 dz 80 110 -90 The indifference probabilities are as follows: Indifference Probability (p) Payoff 110 Decision maker A Decision maker B Decision maker C 1.00 1.00 1.00 80 0.95 0.80 0.85 60 0.85 0.70 0.75 30 0.75 0.55 0.60 -30 0.60 -90 0.00 0.25 0.00 0.50 0.00 Find a recommended decision for each of the three decision makers, if P(51) = 0.30, P(52) = 0.40, and P(53) = 0.30. (Note: For the same decision problem, different utilities can lead to different decisions.) If required, round your answers to two decimal places. Find a recommended decision for each of the three decision makers, if P(s1) = 0.30, P(52) = 0.40, and P(53) = 0.30. (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) = 0.80 X EU(d2) = 0.69 X Recommended decision: d Decision maker B EU(d1) = 0.49 X EU(d2) = 0.64 X Recommended decision: d Decision maker C EU(d1) = 0.63 X EU(d2) = 0.66 X Recommended decision: d
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