Three decision makers have assessed utilities for the following decision problem (payoff in dollars). Decision Alternative 5₁ 5₂ 53 20 50 -20 d₁ d₂ The indifference probabilities are as follows. Payoff Decision Maker A Decision Maker B Decision Maker C 100 80 50 20 -20 -100 1.00 0.95 0.90 0.70 0.50 80 100 100 0.00 1.00 0.60 0.50 0.35 0.15 0.00 1.00 0.90 0.75 0.60 0.40 0.00 If P(S₁) = 0.25, P(S₂) = 0.50, and P(S3)0.25 and all decision makers assign a utility of 10 to the greatest payoff and a utility of 0 to the smallest payoff, find a recommended decision for each of the three decision makers. (Note: For the same decision problem, different utilities can lead to different decisions.) Decision Maker A should choose ?? Decision Maker B should choose ??. Decision Maker C should choose ??.
Three decision makers have assessed utilities for the following decision problem (payoff in dollars). Decision Alternative 5₁ 5₂ 53 20 50 -20 d₁ d₂ The indifference probabilities are as follows. Payoff Decision Maker A Decision Maker B Decision Maker C 100 80 50 20 -20 -100 1.00 0.95 0.90 0.70 0.50 80 100 100 0.00 1.00 0.60 0.50 0.35 0.15 0.00 1.00 0.90 0.75 0.60 0.40 0.00 If P(S₁) = 0.25, P(S₂) = 0.50, and P(S3)0.25 and all decision makers assign a utility of 10 to the greatest payoff and a utility of 0 to the smallest payoff, find a recommended decision for each of the three decision makers. (Note: For the same decision problem, different utilities can lead to different decisions.) Decision Maker A should choose ?? Decision Maker B should choose ??. Decision Maker C should choose ??.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section9.2: Elements Of Decision Analysis
Problem 2P
Related questions
Question
![Three decision makers have assessed utilities for the following decision problem (payoff in dollars).
Decision Alternative
100
80
The indifference probabilities are as follows.
50
Payoff Decision Maker A
20
d₁
d₂
-20
-100
1.00
0.95
0.90
0.70
0.50
0.00
$1 $2
Decision Maker B should choose ??
20 50 -20
Decision Maker C should choose ??
$3
80 100 -100
Decision Maker B
1.00
0.60
0.50
0.35
0.15
0.00
Decision Maker C
1.00
0.90
0.75
0.60
0.40
If P(S₁) = 0.25, P(S₂) = 0.50, and P(S3)
= 0.25 and all decision makers assign a utility of 10 to the greatest payoff and a utility of 0 to the smallest payoff, find a recommended decision for each of the three decision makers. (Note: For the same decision
problem, different utilities can lead to different decisions.)
Decision Maker A should choose ?? ✓
0.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feeaa8045-e0ae-4f8f-bfb9-81e4f69114f4%2F8d7c90dc-7ef8-4edb-bef4-fc7788a88403%2F8ilalr_processed.png&w=3840&q=75)
Transcribed Image Text:Three decision makers have assessed utilities for the following decision problem (payoff in dollars).
Decision Alternative
100
80
The indifference probabilities are as follows.
50
Payoff Decision Maker A
20
d₁
d₂
-20
-100
1.00
0.95
0.90
0.70
0.50
0.00
$1 $2
Decision Maker B should choose ??
20 50 -20
Decision Maker C should choose ??
$3
80 100 -100
Decision Maker B
1.00
0.60
0.50
0.35
0.15
0.00
Decision Maker C
1.00
0.90
0.75
0.60
0.40
If P(S₁) = 0.25, P(S₂) = 0.50, and P(S3)
= 0.25 and all decision makers assign a utility of 10 to the greatest payoff and a utility of 0 to the smallest payoff, find a recommended decision for each of the three decision makers. (Note: For the same decision
problem, different utilities can lead to different decisions.)
Decision Maker A should choose ?? ✓
0.00
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