Three Decision Makers Have Assessed Payoffs for the Following Decision

question 8

Essay

Three decision makers have assessed payoffs for the following decision problem (payoff in dollars).
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​ $$\begin{array} { | c | c | c | c | } \hline { \text { Decision Alternative } } & & { \text { State of Nature } } \\\hline & s 1 & s 2 & s 3 \\\hline d 1 & 15 & 40 & - 20 \\\hline d 2 & 60 & 80 & - 80 \\\hline\end{array}$$ ​
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The indifference probabilities are as follows: $$\begin{array}{l}\begin{array} { | c c c c | } \hline & { \text { IndifferenceProbability } ( p ) } \\\text { Payoff } & \text { Decision Maker A } & \text { Decision } & \text { Mecision Maker } \mathbf { C } \\\hline 80 & \text { Does not apply } & \text { Does not apply } & \text { Does not apply } \\60 & 0.7 & 0.95 & 0.85 \\40 & 0.5 & 0.9 & 0.7 \\15 & 0.3 & 0.8 & 0.55 \\- 20 & 0.15 & 0.6 & 0.35\\- 80& \text { Does not apply }&\text { Does not apply }&\text { Does not apply }\\\hline\end{array}\\\end{array}$$ If P(s₁) = 0.30, P(s₂) = 0.55, and P(s₃) = 0.15, find a recommended decision for each of the three decision makers.

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Definitions:

Weights

Objects of known mass used for various purposes including balancing scales, physical exercises, and as measurements in scientific experiments.

Prediction

The act of forecasting future events or behaviors based on current or past information.

Light Waves

Electromagnetic waves that are visible to the human eye, responsible for the sensation of sight.

Object Vanish

A phenomenon or trick where an object appears to disappear from perception, often used in magic or psychological experiments.