If the probabilities of cold weather (S1), warm weather (S2), and rainy weather (S3) are 0.2, 0.4, and 0.4, respectively, then what decision should be made using the expected value criterion?

What will be an ideal response?

Answer:
Ev(a1) = 7.6
Ev(a2) = 9.6 (best)
Ev(a3) = 8.2

Business

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