What is the purpose of utility theory

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Question: 1. State the meanings of EMV and EVPI.

2. Under what conditions is a decision tree preferable to a decision table?

3. What is the difference between prior and posterior probabilities?

4. What is the purpose of Bayesian analysis? Describe how you would use Bayesian analysis in the decision-making process.

5. What is the purpose of utility theory?

6. Briefly discuss how a utility function can be assessed. What is a standard gamble, and how is it used in determining utility values?

Reference no: EM131929625

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