9. A decision-maker has two alternative courses of action, A1 and A2. There are three possible states of nature, S1, S2, and S3. The table of conditional profits, as well as the probabilities for the states of nature, appear below. Based on this decision table, which decision alternative produces the higher EMV? States of Nature Alternatives S1 S2 S3 A1 10,000 20,000 6,000 A2 5,000 30,000 15,000 Probability 0.3 0.5 0.2 Part 2 The best decision is ▼ a. alternative Upper A 1alternative A1 b. alternative Upper A 2alternative A2 , with an EMV=$________(enter your response as a whole number).
9. A decision-maker has two alternative courses of action, A1 and A2. There are three possible states of nature, S1, S2, and S3. The table of conditional profits, as well as the probabilities for the states of nature, appear below. Based on this decision table, which decision alternative produces the higher EMV? States of Nature Alternatives S1 S2 S3 A1 10,000 20,000 6,000 A2 5,000 30,000 15,000 Probability 0.3 0.5 0.2 Part 2 The best decision is ▼ a. alternative Upper A 1alternative A1 b. alternative Upper A 2alternative A2 , with an EMV=$________(enter your response as a whole number).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
9.
A decision-maker has two alternative courses of action,
A1
and
A2.
There are three possible states of nature,
S1,
S2,
and
S3.
The table of conditional profits, as well as the probabilities for the states of nature, appear below. Based on this decision table, which decision alternative produces the higher EMV?|
|
States of Nature
|
||
|
Alternatives
|
S1
|
S2
|
S3
|
|
A1
|
10,000
|
20,000
|
6,000
|
|
A2
|
5,000
|
30,000
|
15,000
|
|
Probability
|
0.3
|
0.5
|
0.2
|
Part 2
The best decision is
,
with an
▼
a. alternative Upper A 1alternative A1
b. alternative Upper A 2alternative A2
EMV=$________(enter your response as a whole number).
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