Problem on set of probabilities and payoffs


Assignment:

A decision maker who is considered to be a risk taker is faced with this set of probabilities and payoffs.

State of Nature
Decision s1 s2 s3
d1 5 10 20
d2 -25 0 50
d3 -50 -10 80
probability 0.30 0.35 0.35

Rank the decision alternatives on the basis of expected value.

Provide complete and step by step solution for the question and show calculations and use formulas.

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Mathematics: Problem on set of probabilities and payoffs
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