Essentials Of Business Analytics
1st Edition
ISBN: 9781285187273
Author: Camm, Jeff.
Publisher: Cengage Learning,
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Chapter 12, Problem 13P
The following profit payoff table was presented in Problem 1:
The probabilities for the states of nature are P(s1) = 0.65, P(s2) = 0.15, and P(s3) = 0.20.
- a. What is the optimal decision strategy if perfect information were available?
- b. What is the
expected value for the decision strategy developed in part (a)? - c. Using the expected value approach, what is the recommended decision without perfect information? What is its expected value?
- d. What is the expected value of perfect information?
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Chapter 12 Solutions
Essentials Of Business Analytics
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