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  • Decision Solution

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    John Carlo Delorino
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    This document calculates the expected values of two decisions, D1 and D2, based on possible outcomes with associated probabilities. It finds that the expected value of D1 is 182.5 and the expected value of D2 is 95, indicating D1 has a higher expected value.

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    DECISION SOLUTION

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    This document calculates the expected values of two decisions, D1 and D2, based on possible outcomes with associated probabilities. It finds that the expected value of D1 is 182.5 and the expected value of D2 is 95, indicating D1 has a higher expected value.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    6 views1 page

    Decision Solution

    Uploaded by

    John Carlo Delorino
    This document calculates the expected values of two decisions, D1 and D2, based on possible outcomes with associated probabilities. It finds that the expected value of D1 is 182.5 and the expected value of D2 is 95, indicating D1 has a higher expected value.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    ANSWER: D1

    SOLUTION:

    𝐸𝑉(𝑑1 ) = 0.65 (250) + 0.15 (100) + 0.20 (25)


    𝐸𝑉(𝑑1 ) = 162.5 + 15 + 5
    𝑬𝑽(𝒅𝟏 ) = 182.5

    𝐸𝑉(𝑑2 ) = 0.65 (100) + 0.15 (100) + .20 (75)


    𝐸𝑉(𝑑2 ) = 65 + 15 + 15
    𝐸𝑉(𝑑2 ) = 95

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