Complete the following textbook exercises: 2, 12 and 14

Order id- TTs161112_31205_88
Assignment id- 3 stats q's
2) It is a decision under risk problem. Our state of nature is .7 and .3 and decision to
make is which bottle to choose
Payoff table
State of nature probability Conditional payoff
returnable Non returnable
Law passed .7 80 25
Not passed .3 40 60
68 25.5
As expected monetary payoff for returnable= .7*80+.3+40=68 is greater than EMP of
non returnable bottles=.7*25+.3*60=25.5. so choosing returnable bottles is wise.
12)
State of nature is good or bad weather...