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:

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