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Three decision makers have assessed utilities for the following decision problem (payoff in dollars). Decision Alternative 5₁ 5₂ 53 20 50 -20 d₁ d₂ The indifference probabilities are as follows. Payoff Decision Maker A Decision Maker B Decision Maker C 100 80 50 20 -20 -100 1.00 0.95 0.90 0.70 0.50 80 100 100 0.00 1.00 0.60 0.50 0.35 0.15 0.00 1.00 0.90 0.75 0.60 0.40 0.00 If P(S₁) = 0.25, P(S₂) = 0.50, and P(S3)0.25 and all decision makers assign a utility of 10 to the greatest payoff and a utility of 0 to the smallest payoff, find a recommended decision for each of the three decision makers. (Note: For the same decision problem, different utilities can lead to different decisions.) Decision Maker A should choose ?? Decision Maker B should choose ??. Decision Maker C should choose ??.

Three decision makers have assessed utilities for the following decision problem (payoff in dollars). Decision Alternative 5₁ 5₂ 53 20 50 -20 d₁ d₂ The indifference probabilities are as follows. Payoff Decision Maker A Decision Maker B Decision Maker C 100 80 50 20 -20 -100 1.00 0.95 0.90 0.70 0.50 80 100 100 0.00 1.00 0.60 0.50 0.35 0.15 0.00 1.00 0.90 0.75 0.60 0.40 0.00 If P(S₁) = 0.25, P(S₂) = 0.50, and P(S3)0.25 and all decision makers assign a utility of 10 to the greatest payoff and a utility of 0 to the smallest payoff, find a recommended decision for each of the three decision makers. (Note: For the same decision problem, different utilities can lead to different decisions.) Decision Maker A should choose ?? Decision Maker B should choose ??. Decision Maker C should choose ??.

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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Three decision makers have assessed utilities for the following decision problem (payoff in dollars). Decision Alternative 100 80 The indifference probabilities are as follows. 50 Payoff Decision Maker A 20 d₁ d₂ -20 -100 1.00 0.95 0.90 0.70 0.50 0.00 $1 $2 Decision Maker B should choose ?? 20 50 -20 Decision Maker C should choose ?? $3 80 100 -100 Decision Maker B 1.00 0.60 0.50 0.35 0.15 0.00 Decision Maker C 1.00 0.90 0.75 0.60 0.40 If P(S₁) = 0.25, P(S₂) = 0.50, and P(S3) = 0.25 and all decision makers assign a utility of 10 to the greatest payoff and a utility of 0 to the smallest payoff, find a recommended decision for each of the three decision makers. (Note: For the same decision problem, different utilities can lead to different decisions.) Decision Maker A should choose ?? ✓ 0.00
Transcribed Image Text:Three decision makers have assessed utilities for the following decision problem (payoff in dollars). Decision Alternative 100 80 The indifference probabilities are as follows. 50 Payoff Decision Maker A 20 d₁ d₂ -20 -100 1.00 0.95 0.90 0.70 0.50 0.00 $1 $2 Decision Maker B should choose ?? 20 50 -20 Decision Maker C should choose ?? $3 80 100 -100 Decision Maker B 1.00 0.60 0.50 0.35 0.15 0.00 Decision Maker C 1.00 0.90 0.75 0.60 0.40 If P(S₁) = 0.25, P(S₂) = 0.50, and P(S3) = 0.25 and all decision makers assign a utility of 10 to the greatest payoff and a utility of 0 to the smallest payoff, find a recommended decision for each of the three decision makers. (Note: For the same decision problem, different utilities can lead to different decisions.) Decision Maker A should choose ?? ✓ 0.00
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