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Forecasting Different Alternatives

Author:
January 16th, 2023

The following is a payoff table giving profits for various situations:

States of Nature
Alternatives A B C
Alternative 1 120 140 120
Alternative 2 200 100 50
Alternative 3 100 120 180
Do Nothing 0 0 0

Using the above table and given the probabilities for the States A, B, and C are
0.3, 0.5, and 0.2 respectively; if a perfect forecast of the future were available, what would be the expected profits?

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