Data in the matrix below indicates COST expected from 3 alternatives under 4 states of nature. Determine which alternative is dominant using With and Without Probability (use a = 0.3 and probability of: 30%; 20%; 40% & 10% for S1, S2, S3, and 54 respectively): Which alternative is best using Expected Value? S1 53 S4 10 15 12 20 15 25 Alternatives A1 A2 A3 S2 20 15 18 18 25 19

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Data in the matrix below indicates COST expected from 3 alternatives under 4 states of nature. Determine
which alternative is dominant using With and Without Probability (use a = 0.3 and probability of: 30%;
20%; 40% & 10% for S1, S2, S3, and 54 respectively): Which alternative is best using Expected Value?
Alternatives
S1
53
S4
A1
10
18
15
A2
12
25
20
A3
15
19
25
S2
20
15
18
Transcribed Image Text:Data in the matrix below indicates COST expected from 3 alternatives under 4 states of nature. Determine which alternative is dominant using With and Without Probability (use a = 0.3 and probability of: 30%; 20%; 40% & 10% for S1, S2, S3, and 54 respectively): Which alternative is best using Expected Value? Alternatives S1 53 S4 A1 10 18 15 A2 12 25 20 A3 15 19 25 S2 20 15 18
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