A Payoff Table Is Shown Below The Following Prior Probabilities Are Assigned to the States of }\\\text

Essay

A payoff table is shown below. $\begin{array}{ll}\text { Alternative }\\\text { State of Nature }&\quad a_1\quad\quad a_2\quad\quad a_3\\\begin{array}{ll}s_1\\s_2\\s_3\end{array}&\begin{array}{|lll|}\hline 21\quad&8\quad&-3\quad \\12&12&7\\-15&9&13\\\hline\end{array}\end{array}$
The following prior probabilities are assigned to the states of nature:
P( $s _ { 1 }$ ) = 0.2, P( $S _ { 2 }$ ) = 0.7, P( $S _ { 3 }$ ) = 0.1.
a. Determine the EMV decision.
b. Set up the opportunity loss table.
c. Determine the EOL decision.
d. What is the expected payoff with perfect information?
e. What is the expected value of perfect information?