Assignment:
Consider the following decision table, which Joe Blackburn has developed for Vanderbilt Enterprises:
State of Nature
Decision Alternatives Low Medium High
|
A
|
140
|
$100
|
S60
|
|
B
|
185
|
S 60
|
S70
|
|
C
|
$60
|
S 70
|
S70
|
|
D
|
S65
|
S 75
|
S70
|
|
E
|
S70
|
S 65
|
S80
|
|
Probability
|
40
|
20
|
40
|
Which decision alternative maximizes the expected value of the pay off?
Provide complete and step by step solution for the question and show calculations and use formulas.