(1) As you already know Professor Hong is an extremely optimistic person. What decision would be made? (2) Today Professor Hong had an argument with his mom and is feeling extremely pessimistic, what decision will he make? (3) If Professor Hong wants to minimize his maximum regret, which activity will he choose?
(1) As you already know Professor Hong is an extremely optimistic person. What decision would be made? (2) Today Professor Hong had an argument with his mom and is feeling extremely pessimistic, what decision will he make? (3) If Professor Hong wants to minimize his maximum regret, which activity will he choose?
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Decision Analysis Problem
Transcribed Image Text:5. Professor Hong is considering four alternatives for the day after the QBA362 final exam (Finally
it's over). The payoff for each opportunity will depend on economic and other conditions, and are
represented in the payoff table below.
Poor
Good
Excellent
Average
25
Play XBOX
Dinner at Genki Sushi
Pick up friends in his limo
Yoga
50
40
25
80
300
20
10
100
15
25
50
25
75
-50
30
(1) As you already know Professor Hong is an extremely optimistic person. What decision
would be made?
(2) Today Professor Hong had an argument with his mom and is feeling extremely
pessimistic, what decision will he make?
(3) If Professor Hong wants to minimize his maximum regret, which activity will he
choose?
(4) If Professor Hong is neither optimistic or pessimistic, what decision will he make?
(5) If the probabilities of each economic condition are 0.5, 0.1, 0.35, and 0.05,
respectively, what investment would be made using the expected value criterion?
(6) the probabilities of each economic condition are 0.5, 0.1, 0.35, and 0.05, respectively,
what is the expected value of perfect information?
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