. Consider the following payoff table.

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.3: Conditional Probability; Independent Events; Bayes' Theorem
Problem 42E
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Answer is A, just need work shown. :)

2. Consider the following payoff table.
States of Nature
Alternatives
A
B
150
Alternative 1
Alternative 2
| Probability
100
200
0.4
100
0.6
Based upon these probabilities, a person would select Alternative 2. Suppose there is
concern about the accuracy of these probabilities. It can be stated that Alternative 2 will
remain the best alternative as long as the probability of A is at least
A) 0.33.
B) 0.50.
c) 0.40.
D) 0.60.
E) None of the above
Transcribed Image Text:2. Consider the following payoff table. States of Nature Alternatives A B 150 Alternative 1 Alternative 2 | Probability 100 200 0.4 100 0.6 Based upon these probabilities, a person would select Alternative 2. Suppose there is concern about the accuracy of these probabilities. It can be stated that Alternative 2 will remain the best alternative as long as the probability of A is at least A) 0.33. B) 0.50. c) 0.40. D) 0.60. E) None of the above
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