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Q.1 Payoff Table: Choices: D1, D2, D3. States of Nature: S1, S2, S3. Profit( in millions)...

Q.1 Payoff Table: Choices: D1, D2, D3. States of Nature: S1, S2, S3. Profit( in millions) for each of the States of Nature are given below: For D1: $100, $400, $500. For D2:-$100, $500, $900. For D3: -$200, $500, $1600. P(s1)=0.4, P(s2)=0.4, P(s3)=0.2. Sample Information Data: Market Research Firm provides following data: conditional probabilities: P(Fav/s1)= 0.40, P(Fav/s2)= 0.5, P(Fav/s3)= 0.9. Then P(Fav)= .54

For the data given in Q.1, compute revised probabilities, draw the decision tree, and enter the payoff values and probabilities, and compute EVwith SI. Do not submit any of the details.

EVwith SI is: between 465 to 475 (True or False)

Math   Statistics-And-Probability   
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