Exhibit 20-2 Below You Are Given a Payoff Table Involving Three States

Multiple Choice

Exhibit 20-2
Below you are given a payoff table involving three states of nature and two decision alternatives. The probability that S₁ will occur is 0.1; the probability that S₂ will occur is 0.6; and the probability that S₃ will occur is 0.3.
-Refer to Exhibit 20-2. The recommended decision based on the expected value criterion is

A) A
B) B
C) Both alternatives are the same.
D) None of the answers are correct.