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Hi Tutor ,
In Cement com question the requirement was to Construct a pay-off table to show all the possible profit outcomes
My confusion is the probability ,do we have to consider these probabilities in every type of the decision or just if we want to calculate the expected value method and these should not be effective in all the other methods like Maximin,Maximax,and regret .
Because when looking to the percentages it does confuse the students as if he should account for that in the payoff table .
Can you please clarify.
Thanks ,
Probabilities are only used when it asks for Expected Values.
They may appear in the question, at the side of the payoff but you only use the probability when you are asked for the EV
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