Answer to Question #311436 in Management for SAKSHI

Question

Consider the following Decision alternative for the Raman Pahwa, he wants to invest in stocks, and thought about two situations about tomorrow’s market condition. The figures (in INR) in the following table exhibit profit per unit of stock-investment. payoff table: Favorable market Unfavorable market Lakshmi pvt ltd 55 26 Mehta Groups of industries 43 38 Surya 29 43 LT energy 15 51 1. Draw the decision tree 2. If we assign the following probabilities to the states of nature, then determine the EMV decision. P(s1) = .4 P(s2) = .1 P(s3) = .3 P(s4) = .2

Answer 1

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