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Under a decision alternative, three outcomes O1 to O3 are possible. Suppose that at O1, PW = P250; at O2, PW = P300; and at
Under a decision alternative, three outcomes O1 to O3 are possible. Suppose that at O1, PW = P250; at O2, PW = P300; and at O3, PW = 0. What is the expected value if the combined probability of O2 and O3 is twice that of O1, and that O2 has a probability that is 30% of that of O3's?
1. (2 pts.) Under a decision alternative, three outcomes 01 to 03 are possible. Suppose that at 01, PW = P250; at 02, PW = P300; and at 03, PW = 0. What is the expected value if the combined probability of 02 and 03 is twice that of O1, and that 02 has a probability that is 30% of that of 03's? (Write your final answer like P200 using "P" as the peso sign.)Step by Step Solution
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