An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 20

The following profit payoff table was presented in Problem 1. Suppose that the decision marker obtained the probability assessments P ( s 1 ) = 0.65, P ( s 2 ) = 0.15 and P ( s 3 ) = 0.20. Use the expected value approach to determine the optimal decision.