Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

Find the alternative would be selected according to expected value and utility.

For the payoff table below the decision maker will use P (s1) = .15, P (s2) = .5, and P (s3) = .35.


s1

s2

s3

d1

-5000

1000

10,000

d2

-15,000

-2000

40,000

1) describe what alternative would be chosen according to expected value?

2) For the lottery having a payoff of 40000 with probability p and -15,000 with probability (1-p) the decision maker expressed the following indifference probabilities.

Payoff

Probability

10,000

.85

1000

.60

-2000

.53

-5000

.50

Let U(40,000) = 10 and U(-15,000) = 0 also find the utility value for each payoff.

c. describe what alternative would be chosen according to expected utility?

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M922110

Have any Question? 


Related Questions in Statistics and Probability

A workstation is used until it fails and then it is sent

A workstation is used until it fails and then it is sent out for repair. The time between failures, or the length of time the workstation functions until it needs repair, is a random variable . Assume the times between f ...

The three letters c a and t represent the states of a

The three letters C, A, and T represent the states of a word-generating system. Let the initial state probability vector be (1/3 1/3 1/3) for the three letters, respectively. The transition matrix is given as What is the ...

Write a matlab program to calculate the Write a MATLAB program to calculate the

Write a MATLAB program to calculate the probability   is a Gaussian random variable for an arbitrary x 1  and x 2 . Note you will have to specify the mean and variance of the Gaussian random variable.

Questionnbspromia is a small closed economy that produces

Question:  Romia is a small, closed economy that produces pianos. Currently the domestic demand for pianos in Romia is given by the equation P = 2000 – 2Q while the domestic supply for pianos in Romia is given by the equ ...

The average number of cars per hour arriving at a toll

The average number of cars per hour arriving at a toll booth is 57 while the standard deviation is 15. (a) Use Markov's inequality to find an upper bound on the probability of having more than 200 cars arrive in an hour. ...

A study discovered that americans consumed an average of

A study discovered that Americans consumed an average of 10.3 pounds of chocolate per year. Assume that the annual chocolate consumption follows the normal distribution with a standard deviation of 3.4 pounds. Complete p ...

Estimation of range and bearing angle -1 bearing-angle

Estimation of Range and Bearing Angle - 1. Bearing-angle estimation A passive detection system consists of two acoustic receivers. The separation between the receivers is 2.5 meters. The acoustic propagation speed in air ...

In statistics how would you interpret the direction of the

In statistics, How would you interpret the direction of the line in which all data points fall on the diagonal line? for correlation.

Supposenbspnbspare a sequence of independent and

Suppose   are a sequence of independent and exponentially distributed random variables with Assuming that is an odd number    for some integer K ): (a) Find the PDF of the median of the sequence. (b) Find the expected va ...

Assignment bottling company case studyimagine you are a

Assignment: Bottling Company Case Study Imagine you are a manager at a major bottling company. Customers have begun to complain that the bottles of the brand of soda produced in your company contain less than the adverti ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate