The payoff table is a device that a decision maker can use to summarize and organize information relevant to his decision. It is helpful in choosing among alternatives because it facilitates their comparison. The general format of a payoff table for m alternatives and n states of nature is shown in the following table.

A_i = the i-th alternative for i = 1,2,…,m

S_j = the j-th state of nature for j = 1,2,…,n

v_ij = the value of payoff that will be realized if alternative A_i is chosen and event S_j occurs