In Constructing a Payoff Table to Compute the Cost of Uncertainty

Multiple Choice

In constructing a payoff table to compute the cost of uncertainty, which of the following defines the correct order of steps taken?

A) Add the probabilities, compute the expected value for each decision, and determine the best decision using expected-value decision criterion.
B) Compute the expected value for each decision alternative, calculate the probabilities, and determine the best decision using expected-value decision criterion.
C) Add the probabilities and determine the best decision using expected-value decision criterion.
D) Add the probabilities, compute the expected value for each decision, and determine the best decision using highest values.