The following payoff table was developed. Let the probability of state of natures are as follows: P(S1) = 0.30, P(S2) = 0.40, and P(S3) = 0.30. Compute the expected monetary value for each of the alternatives. What decision would you recommend? Alternative S1 S2 S3 A1 80 92 94 A2 82 80 85 A3 67 70 72 A4 45 69 54
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.
The following payoff table was developed. Let the probability of state of natures are as follows:
P(S1) = 0.30, P(S2) = 0.40, and P(S3) = 0.30. Compute the expected monetary value for each of the alternatives. What decision would you recommend?
Alternative S1 S2 S3
A1 80 92 94
A2 82 80 85
A3 67 70 72
A4 45 69 54
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