For the payoff table below,the decision maker will use P(s₁)= 0.15,P(s₂)= 0.5,and P(s₃)= 0.35.
a.What alternative would be chosen according to expected value?
b.For a lottery having a payoff of 40,000 with probability p and -15,000 with probability (1 -p),the decision maker expressed the following indifference probabilities.
c.What alternative would be chosen according to expected utility?

Question

For the payoff table below,the decision maker will use P(s₁)= 0.15,P(s₂)= 0.5,and P(s₃)= 0.35.

For the payoff table below,the decision maker will use P(s<sub>1</sub>)= 0.15,P(s<sub>2</sub>)= 0.5,and P(s<sub>3</sub>)= 0.35. a.What alternative would be chosen according to expected value? b.For a lottery having a payoff of 40,000 with probability p and -15,000 with probability (1 -p),the decision maker expressed the following indifference probabilities. c.What alternative would be chosen according to expected utility?

a.What alternative would be chosen according to expected value?
b.For a lottery having a payoff of 40,000 with probability p and -15,000 with probability (1 -p),the decision maker expressed the following indifference probabilities.
c.What alternative would be chosen according to expected utility?

Quizplus · Accepted Answer

The Answer of For the payoff table below,the decision maker will use P(s₁)= 0.15,P(s₂)= 0.5,and P(s₃)= 0.35. a.What alternative would be chosen according to expected value? b.For a lottery having a payoff of 40,000 with probability p and -15,000 with probability (1 -p),the decision maker expressed the following indifference probabilities. c.What alternative would be chosen according to expected utility?

For the Payoff Table Below,the Decision Maker Will Use P(s1)=

For the Payoff Table Below,the Decision Maker Will Use P(s₁)=