The subsiquent cost tree illustrate the expected outcome

Reference no: EM1316174

Find the Expected value of the perfect information for the given problem.

Given the following cost tree, what is the expected outcome?

5	$1,000
0.3	$500
0.2	($300)
0.2	$1,500
0.8	$300

Optimistic decision from the given information.

The following is a payoff table giving profits for various situations.

	Status of Nature
	A	B	C
Alternative 1	120	140	120
Alternative 2	200	100	50
Alternative 3	100	120	180
Do nothing	0	0	0

What decision would an optimist make?

Reference no: EM1316174

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