A payoff table is given as s1s2s3d1250450500d2300-250900d3400500800 In each part of your answer, show the work you relied upon to reach your answer.What decision should be made using expected value, in which the probabilities are s1=.3, s2=.2, s3=.5?What decision should be made by the conservative decision-maker?What choice should be made using the Hurwicz method, in which the coefficient of optimism (or realism) is .6? (hint: ignore the middle state of nature in performing the calculation).

Expected value method EV=(s1×p1)+(s2×p2)+(s3×p3) Conservative decision-maker A conservative…

Answered: A payoff table is given as s1…

6th Edition

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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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A payoff table is given as

In each part of your answer, show the work you relied upon to reach your answer.

What decision should be made using expected value, in which the probabilities are s₁=.3, s₂=.2, s₃=.5?
What decision should be made by the conservative decision-maker?
What choice should be made using the Hurwicz method, in which the coefficient of optimism (or realism) is .6? (hint: ignore the middle state of nature in performing the calculation).

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