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| Subject:
Statistics
Category: Miscellaneous Asked by: cop189-ga List Price: $10.00 |
Posted:
24 Apr 2005 15:04 PDT
Expires: 24 May 2005 15:04 PDT Question ID: 513619 |
I was curious as to how a person calculates the expected payoff
dealing with states of nature. An example:
States of nature
High Sales Med.Sales Low Sales
A(0.2) B(0.5) C(0.3)
A1(sell Juice) 3000 2000 -6000
A2(don't sell) 0 0 0
What would be the expected payoff for A1 and A2? What would be a good
recommendation concerning the payoffs? How would I interpret the
results based on practical considerations? |
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| There is no answer at this time. |
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| Subject:
Re: Statistics
From: solidvoid-ga on 25 Apr 2005 08:37 PDT |
The expected payoff for A1 is 0.2*3000+0.5*2000+0.3*(-6000)=(-200) The expected payoff for A2 is 0.2*0+0.5*0+0.3*0=0 Recommendation: Don't sell for the market risk is too high. |
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