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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
Three decision makers have assessed utilities for the following decision problem (payoff in dollars):
State of Nature | |||||||||
Decision Alternative | s1 | s2 | s3 | ||||||
d1 | 20 | 50 | -20 | ||||||
d2 | 80 | 100 | -100 |
The indifference probabilities are as follows:
Indifference Probability (p) | |||||||||||
Payoff | Decision Maker A | Decision Maker B | Decision Maker C | ||||||||
100 | 1.00 | 1.00 | 1.00 | ||||||||
80 | 0.95 | 0.70 | 0.90 | ||||||||
50 | 0.90 | 0.60 | 0.75 | ||||||||
20 | 0.70 | 0.45 | 0.60 | ||||||||
-20 | 0.50 | 0.25 | 0.40 | ||||||||
-100 | 0.00 | 0.00 | 0.00 |
If P(s1) = 0.25, P(s2) = 0.50, and P(s3) = 0.25, find a recommended decision for each of the three decision makers. (Note: For the same decision problem, different utilities can lead to different decisions.)
Decision Maker A: | - Select your answer -d1d2d3Item 1 |
Decision Maker B: | - Select your answer -d1d2d3Item 2 |
Decision Maker C: | - Select your answer -d1d2d3Item 3 |
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