Three decision makers have assessed utilities for the following decision problem (payoff in dollars):
|
State
of Nature |
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|
Decision
Alternative |
s1 |
s2 |
s3 |
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|
d1 |
20 |
50 |
-20 |
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|
d2 |
80 |
100 |
-100 |
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The indifference probabilities are as follows:
|
Indifference
Probability (p) |
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|
Payoff |
Decision
Maker A |
Decision
Maker B |
Decision
Maker C |
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|
100 |
1.00 |
1.00 |
1.00 |
||||||||
|
80 |
0.95 |
0.70 |
0.90 |
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|
50 |
0.90 |
0.60 |
0.75 |
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|
20 |
0.70 |
0.45 |
0.60 |
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|
-20 |
0.50 |
0.25 |
0.40 |
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|
-100 |
0.00 |
0.00 |
0.00 |
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If P(s1) = 0.25, P(s2) = 0.50, and P(s3) = 0.25, 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: |
|
|
Decision Maker B: |
|
|
Decision Maker C: |
|
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