A Group of Friends Are Planning a Recreational Outing and Have

question 121

Short Answer

A group of friends are planning a recreational outing and have constructed the following payoff table to help them decide which activity to engage in. Assume that the payoffs represent their level of enjoyment for each activity under the various weather conditions.
$\begin{array}{lcccc}&&&\text { Weather }\\&&Cold &Warm& Rainy\\&&\mathrm{S} & \mathrm{S}_{2} & \mathrm{~S}_{3}\\\text { Bike: } & \text { Al } & 10 & 8 & 6 \\\text { Hike: } & \text { A2 } & 14 & 15 & 2 \\\text { Fish: } & \text { A3 } & 7 & 8 & 9\end{array}$
-If the probabilities of cold weather (S1), warm weather (S2), and rainy weather (S3) are 0.2, 0.4, and 0.4, respectively, then what is the EVPI for this situation?

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