Describe a payoff and a utility

As explained in this week’s resources, maximization of expected utility involves the following five steps of decision making:

  1. Identifying future conditions, along with the likelihood of the condition being realized
  2. Listing possible alternatives
  3. Estimating the payoff or utility for each alternative under each future condition
  4. Calculating the expected utility
  5. Selecting the best alternative

Decision trees can be used to illustrate all of this information in a graphic manner.

In this Assignment, apply the information from this week’s resources to solve decision problems and complete a Decision Analysis for those problems. Solve problems 5, 10, and 11 on pp. 231–234 of the Stevenson text by creating decision trees, determining expected utilities of the decision alternatives, and offering recommended decisions based on the decision tree analysis.

Approximate length: 4–5 pages

  • attachment

    decision_tree.docx
  • attachment

    decison_text.pdf

WE HAVE HAD A GOOD SUCCESS RATE ON THIS ASSIGBNMENT. PLACE AN ORDER WITH SCHOLAR WRITERS AND GET 100% ORIGINAL PAPERS

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>