e 25-8. Following table gives Payoffs for actions A1, A2 and A3 corresponding to states ofnature S, and S, whose chances are 0-6 and 04 respectively.States of NatureActions001A,A2A3S,162018001S,191512Find decisions under:(i) Maximin criterion(ii) EMV criterion.

Given Data : States of Nature Actions S1 S2 A1 16 19 A2 20 15 A3 18 12 i)…

Answered: e 25-8. Following table gives Payoffs…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

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The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. Decision Alternative = States of Nature 51 52 53 d₁ d₂ Suppose that the decision maker obtained the probabilities P(s₁) = 0.65, P(5₂) = 0.15, and P(53) = 0.20. Use the expected value approach to determine the optimal decision. EV(d₁) EV(d₂) = The optimal decision is? . 240 90 90 15 90 65
Suppose that there is a decision to be made where there are two decision alternatives and three possible states of nature. Consider the payoff table below, and determine the maximum regret for decision alternative 1. S1 S2 d1 10 15 d2 11 15 17 Your Answer: Answer
The accompanying data came from a study of collusion in bidding within the construction industry. No. Bidders No. Contracts 2 3 4 5 6 7 8 9 10 11 USE SALT 8 20 26 18 12 8 6 7 4 3 (a) What proportion of the contracts involved at most five bidders? At least five bidders? (Round your answers to four decimal places.) at most five bidders. at least five bidders X X (b) What proportion of the contracts involved between five and 10 bidders, inclusive? Strictly between five and 10 bidders? (Round your answers to four decimal places.) between five and 10 bidders, inclusive strictly between five and 10 bidders X X
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A4 7. (Choosing Lotteries) There are two lotteries, A and B. The payout of both lotteries depends on the weather. If the weather is sunny, lottery A pays 70 and lottery B pays 10. If the weather is not sunny, lottery A pays 10 and lottery B pays 70. The probability of a sunny weather is 0.6. Suppose your utility function for money is u(x) = √ x and you are expected utility maximizer. Your initial wealth is 100. (a) If only lottery A is available at price 45, should you buy it? If only lottery B is available at price 34, should you buy it? (b) If both lottery A and lottery B are available at prices 45 and 34, respectively, should you buy the lotteries?
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e 25-8. Following table gives Payoffs for actions A1, A2 and A3 corresponding to states of nature S, and S2 whose chances are 0-6 and 0·4 respectively. States of Nature Actions A, A2 A3 02 S, 16 20 18 S2 19 15 12 Find decisions under: (i) Maximin criterion (ii) EMV criterion.