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Exhibit 20-2Below is a payoff table involving three states of nature and two decision alternatives. Decision States of Nature Alternative s1 s2   s3 A 80 45 –20 B 40 50   15 P(s1) = .1,  P(s2) = .6, and P(s3) = .3.Refer to Exhibit 20-2. The expected value of the best alternative equals _____.   a. 12     b. 38.5     c. 29     d. 105

Exhibit 20-2Below is a payoff table involving three states of nature and two decision alternatives. Decision States of Nature Alternative s1 s2   s3 A 80 45 –20 B 40 50   15 P(s1) = .1,  P(s2) = .6, and P(s3) = .3.Refer to Exhibit 20-2. The expected value of the best alternative equals _____.   a. 12     b. 38.5     c. 29     d. 105

Practical Management Science
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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Exhibit 20-2
Below is a payoff table involving three states of nature and two decision alternatives.

Decision States of Nature
Alternative s1 s2   s3
A 80 45 –20
B 40 50   15

P(s1) = .1,  P(s2) = .6, and P(s3) = .3.

Refer to Exhibit 20-2. The expected value of the best alternative equals _____.
  a. 12  
  b. 38.5  
  c. 29  
  d. 105  
 
 
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