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24-05-2023
Mathematics

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The following payoff table shows the profit for a decision problem with two states of nature and two decision alternatives. State of Nature $1 Decision Alternative S1 S2 d1 13 4 d₂ 7 6 (a) Suppose P(x) = 0.2 and P(S2) = 0.8. What is the best decision using the expected value approach?

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