Figure 7-5.On the graph below, Q represents the quantity of the good and P represents the good's price

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Home>Mathematics homework help>Numerical analysis homework help>Figure 7-5.On the graph below, Q represents the quantity of the good and P represents the good's price

For the profit payoff table below, the decision maker assumes that  P(s1) = .15, p(s2) = .50, and p(s3) = .35.

 

State of Nature

Decision

s 1

s 2

s 3

d 1

   -5000

 1000

10,000

d 2

-15,000

-2000

40,000

What alternative would be chosen according to expected value?