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The following profit payoff table shows profit for a decision analysis problem with two decision alternatives and three states of nature. Suppose that the decision maker obtained the probability assessments P(S1) = 0.50, P(S2) = 0.20, and P(S3) = 0.30.
State of Nature Decision S1 S2 S3d1 150 150 75d2 100 125 125
Use the expected value approach to determine the optimal decision.
The optimal decision is_______________ d1 or d2
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