What action would you choose according to expected value criterion?

What will be an ideal response?


Answer:
EV1 = (.3)(20) + (.5)(30) + (.2)(90) = 39
EV2 = (.3)(60) + (.5)(70) + (.2)(10) = 55
EV3 = (.3)(80) + (.5)(50) + (.2)(40) = 57

Business

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