Review the payoff table below that shows the profits earned for each decision alternative (DA, DB, and DC) under the states of nature S1, S2, and S3. What is the expected value of perfect information? Assume: Probability (S1) = 0.4 and Probability (S3) = 0.2. S1 S2 S3 DA $100 $145 $120 DB $75 $125 $110 DC $95 $85 $60 $0 $10 $15 $20 $25 Cannot be determined.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Review the payoff table below that shows the profits earned for each decision alternative (DA, DB, and DC) under the states of nature S1, S2, and S3. What is the
Assume: Probability (S1) = 0.4 and Probability (S3) = 0.2.
|
S1 |
S2 |
S3 |
|
|
DA |
$100 |
$145 |
$120 |
|
DB |
$75 |
$125 |
$110 |
|
DC |
$95 |
$85 |
$60 |
- $0
- $10
- $15
- $20
- $25
- Cannot be determined.
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