Problem -
Consider the following decision table, which Joe Blackburn has developed for Vanderbilt Enterprises:
|
Decision Alternatives
|
States of Nature
|
|
Low
|
Medium
|
High
|
|
A
|
$40
|
$100
|
$60
|
|
B
|
$85
|
$60
|
$70
|
|
C
|
$60
|
$70
|
$70
|
|
D
|
$65
|
$75
|
$70
|
|
E
|
$70
|
$65
|
$80
|
|
Probability
|
.40
|
.20
|
.40
|
Which decision alternative maximizes the expected value of the pay off?