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Probability Theory Tea Time Please help with the following problem Tea Time is considering selling juices along with its other products States of Nature High Sales Med Sales Low Sales

Probability Theory Tea Time Please help with the following problem Tea Time is considering selling juices along with its other products States of Nature High Sales Med Sales Low Sales

Probability Theory – Tea Time

Please help with the following problem

 

Tea Time is considering selling juices along with its other
products

 

States of Nature

 

High Sales Med Sales Low
Sales

A(02) B(05) C(03)

3000 2000 -6000

0 0 0

 

A1 (sell
juices)

A2 (don’t
sell juices)

 

The probabilities shown above represent the states of nature
and the decision maker’s (eg, manager) degree of uncertainties and personal
judgment on the occurrence of each state What is the expected payoff for
actions A1 and A2 above? What would be your recommendation? Interpret the
results based on practical considerations

Tripti 01-Sep-2020

Answer (Solved)

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