For the following payoff table, the probability of event 1 is 0.8, the probability of event 2 is 0.1, and the probability of event 3 is 0.1   ACTION ACTION EVENT A ($) B ($) 1 50 10 2 300 100 3 500 200 a. Determine the optimal action based on the maximax criterion b. Compute the Expected Monetary Value (EMV) for action A c. Explain the meaning of the Expected Value of Perfect Information (EVPI) in this problem

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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For the following payoff table,

the probability of event 1 is 0.8,

the probability of event 2 is 0.1,

and the probability of event 3 is 0.1

 

ACTION

ACTION

EVENT

A ($)

B ($)

1

50

10

2

300

100

3

500

200

a. Determine the optimal action based on the maximax criterion

b. Compute the Expected Monetary Value (EMV) for action A

c. Explain the meaning of the Expected Value of Perfect Information (EVPI) in this problem

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