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The following payoff table shows profits for two decision alternatives under three different states of nature....

  1. The following payoff table shows profits for two decision alternatives under three different states of nature. It is known that the probability of the occurrence of state of nature 1 is 0.1.

Profit

State of Nature 1

State of Nature 2

State of Nature 3

Decision Alternative 1

10

13

9

Decision Alternative 2

15

9

10

  1. [4] What should the probabilities of states of nature 2 and 3 be so that the expected values of the two decision alternatives equal one another?

  2. [2] Determine the expected values of the two decision alternativ

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