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E(U) = P V . Normal Utility Maximizing Function . E(U) is the expected utility of alternative 1 n is the number of possible outcomes V i is the value of the i th outcome affected by the alternative P i is the probability that the alternative
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E(U) = P V Normal Utility Maximizing Function E(U) is the expected utility of alternative 1 n is the number of possible outcomes Vi is the value of the ith outcome affected by the alternative Pi is the probability that the alternative will result in the outcome means that you sum the outcomes times probability, starting with 1 and going through n
Hostage Crisis Decision-Making Alternatives for President Reagan 1. Sell arms to Iran 2. Rescue Mission 3. Third Parties 4. Do Nothing 5.
Outcomes for Alternative One Hostage Crisis Decision-Making 1. Hostages are Released 2. Relations with Iran Improve 3. Help the Freedom Fighters 4. Harm Terrorism Policy
Hostage Crisis Decision-Making V P P x V Outcome 1 Hostages Released + 80 .6 + 48 Outcome 2 Relations with Iran +50 .9 +45 Outcome 3 Freedom Fighters +20 .3 + 6 Outcome 4 Harm Terrorism Policy -100 .2 -20