The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. If the probability of S1 is 0.5, then the expected value approach for X is

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.4: Discrete Random Variables; Applications To Decision Making
Problem 14E
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The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. If the probability of S1 is 0.5, then the expected value approach for X is

The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature.
Alternatives
State of
Nature
X Y Z
12 -28
4 10 5
If the probability of S1 is 0.5, then the expected value approach for X is
2
O 6.5
8
04
Transcribed Image Text:The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature. Alternatives State of Nature X Y Z 12 -28 4 10 5 If the probability of S1 is 0.5, then the expected value approach for X is 2 O 6.5 8 04
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