The following payoff table shows profit for a decision analysis problem with two decision alternatives and...
The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature:
| State of Nature | |||
| Decision Alternative | S1 | S2 | S3 |
| d1 | 250 | 100 | 25 |
| d2 | 100 | 100 | 75 |
The probabilities for the states of nature are P(s1) = 0.65, P(s2) = 0.15, and P(s3) = 0.20.
| (a) | What is the optimal decision strategy if perfect information were available? | ||||||
|
|||||||
| (b) | What is the expected value for the decision strategy developed in part (a)? If required, round your answer to one decimal place. | ||||||
| (c) | Using the expected value approach, what is the recommended decision without perfect information? | ||||||
| - Select your answer (-d1,d2)Item 5 | |||||||
| What is its expected value? If required, round your answer to one decimal place. | |||||||
| (d) | What is the expected value of perfect information? |
Homework Answers
Add Answer to:
The following payoff table shows profit for a decision analysis
problem with two decision alternatives and...
The following profit payoff table shows profit for a decision analysis problem with two decision alternatives...
The following profit payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: State of Nature Decision Alternative Si S2 S3 d1 300 175 50 d2 200 175 100 The probabilities for the states of nature are P(51) = 0.5, P(52) = 0.3 and P(53) = 0.2. a. What is the optimal decision strategy if perfect information were available? Si : di S2: di or d2 S3 : d2 b. What is...
The following profit payoff table shows profit for a decision analysis problem with two decision alternatives...
The following profit payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. Suppose that the decision maker obtained the probability assessments P(S1) = 0.65, P(S2) = 0.20, and P(S3) = 0.15. State of Nature Decision Alternative S1 S2 S3 d1 150 175 50 d2 175 75 100 Use the expected value approach to determine the optimal decision. The optimal decision is?
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative s1 s2 d1 10 1 d2 4 3 (a...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative s1 s2 d1 10 1 d2 4 3 (a) Suppose P(s1)=0.2 and P(s2)=0.8. What is the best decision using the expected value approach? Round your answer in one decimal place. The best decision is decision alternative - Select your answer -d1d2Item 1 , with an expected value of . (b) Perform sensitivity analysis on the...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative s1 10 4 S2 d1 d2 (a) Suppose P(S1)-0.2...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative s1 10 4 S2 d1 d2 (a) Suppose P(S1)-0.2 ad P(s2)-0.8. What is the best decision using the expected value approach? Round your answer in one decimal place The best decision is decision alternative d2 , with an expected value of 3.2 (b) Perform sensitivity analysis on the payoffs for decision alternative d1. Assume the...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative s1 S2 101 4 (a) Suppose P(si)-0.2 and...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative s1 S2 101 4 (a) Suppose P(si)-0.2 and P(s2)-0.8. What is the best decision using the expected value approach? Round your answer in one decimal place. The best decision is decision alternative d2 v , with an expected value of 3.2 (b) Perform sensitivity analysis on the payoffs for decision alternative di. Assume the probabilities...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives State of Nature Decision Alternative 1 2 d1 10 1 d2 (a) Suppose P(s1)-0.2 an...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives State of Nature Decision Alternative 1 2 d1 10 1 d2 (a) Suppose P(s1)-0.2 and P(sz)-0.8. What is the best decision using the expected value approach? Round your answer in one decimal place v, with an expected value of The best decision is decision alternative d2 3.2 (b) Perform sensitivity analysis on the payoffs for decision alternative di. Assume the...
Problem 13-14 (Algorithmic) The followng profit payoff table shows profit for a decision analysis problem vwith...
Problem 13-14 (Algorithmic) The followng profit payoff table shows profit for a decision analysis problem vwith two decision alternatives and three states of nature: State of Nature Decision Alternative SS2 53 di 250 100 100 200 100 150 The probabilities for the states of nature are PO)-0.45. Prs)·О.25 and Prn)-03. a. What is the optimal decision strategy if perfect information was available? 51 : 53 i b. What is the expected value for the decision strategy developed in part (a)?...
Problem 13-01 (Algorithmic) The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: State of Nature Decision Alternative 210...
Problem 13-01 (Algorithmic) The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: State of Nature Decision Alternative 210 130 75 130 280 75 a. Choose the correct decision tree for this problem 210 210 di S1 S1 280 280 130 130 S2 130 130 d2 d2 75 75 di S3 75 (iv) 130 210 S2 210 di S1 130 75 S2 130 210 210 S1 di $1 130 75...
Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of...
Three decision makers have assessed utilities for the following decision problem (payoff in dollars): State of Nature Decision Alternative S1 S2 S3 d1 30 40 -20 d2 80 100 -80 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 0.80 0.85 40 0.85 0.70 0.75 30 0.75 0.55 0.60 -20 0.60 0.25 0.50 -80 0.00 0.00 0.00 Find a recommended decision for each of...
2. Assume you are faced with the following decision alternatives and two states of nature. The pr...
2. Assume you are faced with the following decision alternatives and two states of nature. The profit payoff table is shown below States of Nature Prob (S D1 D2 D3 S1 0.60 100 50 40 S2 0.40 20 50 80 Decision Alternatives a) Do you think undertaking a market research study, with a cost of 25, would be justified in this case? b) What should the probabilities of states 1 and 2 be that options D1 and D3 will have...
The following profit payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: State of Nature Decision Alternative Si S2 S3 d1 300 175 50 d2 200 175 100 The probabilities for the states of nature are P(51) = 0.5, P(52) = 0.3 and P(53) = 0.2. a. What is the optimal decision strategy if perfect information were available? Si : di S2: di or d2 S3 : d2 b. What is...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative s1 10 4 S2 d1 d2 (a) Suppose P(S1)-0.2 ad P(s2)-0.8. What is the best decision using the expected value approach? Round your answer in one decimal place The best decision is decision alternative d2 , with an expected value of 3.2 (b) Perform sensitivity analysis on the payoffs for decision alternative d1. Assume the...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives: State of Nature Decision Alternative s1 S2 101 4 (a) Suppose P(si)-0.2 and P(s2)-0.8. What is the best decision using the expected value approach? Round your answer in one decimal place. The best decision is decision alternative d2 v , with an expected value of 3.2 (b) Perform sensitivity analysis on the payoffs for decision alternative di. Assume the probabilities...
The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives State of Nature Decision Alternative 1 2 d1 10 1 d2 (a) Suppose P(s1)-0.2 and P(sz)-0.8. What is the best decision using the expected value approach? Round your answer in one decimal place v, with an expected value of The best decision is decision alternative d2 3.2 (b) Perform sensitivity analysis on the payoffs for decision alternative di. Assume the...
Problem 13-14 (Algorithmic) The followng profit payoff table shows profit for a decision analysis problem vwith two decision alternatives and three states of nature: State of Nature Decision Alternative SS2 53 di 250 100 100 200 100 150 The probabilities for the states of nature are PO)-0.45. Prs)·О.25 and Prn)-03. a. What is the optimal decision strategy if perfect information was available? 51 : 53 i b. What is the expected value for the decision strategy developed in part (a)?...
Problem 13-01 (Algorithmic) The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature: State of Nature Decision Alternative 210 130 75 130 280 75 a. Choose the correct decision tree for this problem 210 210 di S1 S1 280 280 130 130 S2 130 130 d2 d2 75 75 di S3 75 (iv) 130 210 S2 210 di S1 130 75 S2 130 210 210 S1 di $1 130 75...
2. Assume you are faced with the following decision alternatives and two states of nature. The profit payoff table is shown below States of Nature Prob (S D1 D2 D3 S1 0.60 100 50 40 S2 0.40 20 50 80 Decision Alternatives a) Do you think undertaking a market research study, with a cost of 25, would be justified in this case? b) What should the probabilities of states 1 and 2 be that options D1 and D3 will have...
Most questions answered within 3 hours.
-
Instructions Part 1 - Implementation of a Doubly Linked
List Attached you will find the code...
asked 31 minutes ago -
You work for a factory making bricks. A coworker accidentally
contaminated one of the bricks with...
asked 39 minutes ago -
for python-3
I want to prompt the user to enter their first name and then
Call...
asked 1 hour ago -
Q3 If the formation of a hairpin loop requires a minimum
stem
length of 6 contiguous...
asked 1 hour ago -
Enzymes work by lowering the _____ of a reaction.
Select one:
a. activation energy
b. entropy...
asked 1 hour ago -
Assume three digits are used to represent positive integers and
also assume the following operations are...
asked 2 hours ago -
How many stairs can a 63-kg person climb up with the energy
contained in a candy...
asked 2 hours ago -
Problem 1
A 0.150 kg baseball pitched at 40.0 m/s is hit on a horizontal
line...
asked 2 hours ago -
Variance in reproductive success. The variance among male
reproductive success is 2 and the variance among...
asked 4 hours ago -
To decide your fate, you will play a board game on a simple
board: a linear...
asked 6 hours ago -
1. What are specialty engines? ( )
a. Logical Processors that perform specialized functions
b. An...
asked 7 hours ago -
a. What double precision floating point
number is represented by the following 64-bit binary? Show your...
asked 8 hours ago