Multiple Choice
Consider the payoff table in problem 7.Suppose that the probabilities of states of nature S2 and S3 occurring are equal and that the probability of state of nature S4 occurring is .50.If the probability of state of nature S1 occurring is three times the probability of state of nature S2 occurring, the optimal decision under the expected value criterion is:
A) D1
B) D2
C) D3
D) D4
Correct Answer:
Verified
Correct Answer:
Verified
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