For the payoff table below, the decision maker will use P(s1) = .15, P
(s2) = .5, and P(s3) = .35.
	s1	s2	s3
d1	-5000	1000	10,000
d2	-15,000	-2000	40,000
	a.	What alternative would be chosen according to expected value?
	b.	For a lottery having a payoff of 40,000 with probability p and -
15,000 with probability (1-p), the decision maker expressed the
following indifference probabilities.
			Payo ff		Probability
			10,000    .85
  1000    .60
 -2000    .53
 -5000    .50
Let U(40,000) = 10 and U(-15,000) = 0and find the utility value for each payoff.
c.What alternative would be chosen according to expected utility?  |