Question

45) If average payoffs of 4 acts A1, A2, A3, A4
are 55, 0, 40 and 45 respectively, then the
best decision according to Laplace criterion
is​

Answer 1

Given : average payoffs of 4 acts

A1, A2, A3, A4

55, 0, 40  45

To Find : Laplace criterion

Solution:

Laplace criterion assume Equal probability (  Assuming that the states of nature are equally likely to occur.)

The equal likelihood multiplies the decision payoff for each state of nature by an equal weight

Here are single Event in each ACT

Hence Value remains same

55 is the highest

Hence best decision according to Laplace criterion is​ 55

Answer 2

Step-by-step explanation:

If average payoffs of 4 acts A1, A2, A3, A4