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  1. [–/0.9 Points] CAMMIMS16 13.TB.034.DETAILS MY NOTES

11/7/24, 5:21 PM 407 Week 3: Quiz#3 - MNS407 Management Science, Fall 2024 | WebAssign https://www.webassign.net/web/Student/Assignment-Responses/last?dep=35936174 6/13 The following payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. Decision Alternative States of Nature 270 120 45 120 120 95 The probabilities for the states of nature are and (a) What is the optimal decision strategy if perfect information were available? If then ? ; If then ? ; If then ? . (b) What is the expected value for the decision strategy developed in part (a)? (c) Using the expected value approach, what is the recommended decision without perfect information? What is its expected value? The recommended decision without perfect information is ? . (d) What is the expected value of perfect information? Show My Work (Optional) s1 s2 s3 d1 d2 P(s ) = 0.65,1 P(s ) = 0.15,2 P(s ) = 0.20.3 s1 s2 s3

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