If the probabilities of d1, d2, and d3 are 0.2, 0.5, and 0.3, respectively, then what decision should be made under expected value?
Use the following table to answer the question(s) below.
s1 s2 s3
d1 250 750 500
d2 300 -250 1200
d3 500 500 600
Answer:
Ev(d1) = 575 (best)
Ev(d2) = 295
Ev(d3) = 530
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