I need help calculating the max expected utility. I want to LEARN this stuff, so if I can be so picky please give some explanation with answers (just an answer won't do me any good).
Let P(x) = 0.2 for a Boolean Random Variable X.
Assume that you have to make a decision D=1 or 2, leading to different utilities, both functions of X:
U(D=1,x)= 400, and U(D=1, ~x)= 2
U(D=2,x)= 20, and U(D=2, ~x)= 100
Compute the Expected Utilities and state what choice you would make.
First attempt at a solution.
If I choose D=1, then...
0.2 * (400) + 0.8 * (2) = 81.6
If I choose D=2 then...
0.2 * (20) + 0.8 * (100) = 84
So I would choose D=2. But I have little confidence in that though because this is the first time I've done anything like this.