2. The director of career advising at Orange Community College wants to use decision analysis to provide information to help students decide which 2-year degree program they should pursue. The director has set up the following payoff table for six of the most popular and successful degree programs at OCC that shows the estimated 5-year gross income ($) from each degree for four future economic conditions: Economic Conditions Degree Program Recession Average Good Robust Graphic design Nursing Real estate 175,000 180,000 145,000 220,000 260,000 150,000 115,000 205,000 215,000 165,000 220,000 320,000 Medical technology 130,000 180,000 210,000 280,000 Culinary technology Computer information technology 115,000 145,000 235,000 305,000 125,000 150,000 190,000 250,000 Determine the best degree program in terms of projected income, using the following decision criteria: a. Maximax b. Maximin c. Equal likelihood d. Hurwicz e. The director of career advising at Orange Community College has paid a small fee to a local investment firm to indicate a probability for each future economic condition over the next 5 years. The firm estimates that there is a .20 probability of a recession, a .40 probability that the economy will be average, a .30 probability that the economy will be good, and a .10o probability that it will be robust. Using expected value determine the best degree program in terms of projected income. If you were the director of career advising, which degree program would you recommend? f. Develop a decision tree, with expected values at the probability nodes.
2. The director of career advising at Orange Community College wants to use decision analysis to provide information to help students decide which 2-year degree program they should pursue. The director has set up the following payoff table for six of the most popular and successful degree programs at OCC that shows the estimated 5-year gross income ($) from each degree for four future economic conditions: Economic Conditions Degree Program Recession Average Good Robust Graphic design Nursing Real estate 175,000 180,000 145,000 220,000 260,000 150,000 115,000 205,000 215,000 165,000 220,000 320,000 Medical technology 130,000 180,000 210,000 280,000 Culinary technology Computer information technology 115,000 145,000 235,000 305,000 125,000 150,000 190,000 250,000 Determine the best degree program in terms of projected income, using the following decision criteria: a. Maximax b. Maximin c. Equal likelihood d. Hurwicz e. The director of career advising at Orange Community College has paid a small fee to a local investment firm to indicate a probability for each future economic condition over the next 5 years. The firm estimates that there is a .20 probability of a recession, a .40 probability that the economy will be average, a .30 probability that the economy will be good, and a .10o probability that it will be robust. Using expected value determine the best degree program in terms of projected income. If you were the director of career advising, which degree program would you recommend? f. Develop a decision tree, with expected values at the probability nodes.
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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Transcribed Image Text:The director of career advising at Orange Community College wants to use decision
analysis to provide information to help students decide which 2-year degree program
they should pursue. The director has set up the following payoff table for six of the
most popular and successful degree programs at OCC that shows the estimated 5-year
gross income ($) from each degree for four future economic conditions:
Economic Conditions
Degree Program
Recession
Average
Good
Robust
Graphic design
Nursing
Real estate
145,000
175,000
220,000
260,000
150,000
205,000
215,000
320,000
180,000
115,000
165,000
220,000
Medical technology
130,000
180,000
145,000
210,000
280,000
305,000
Culinary technology
Computer information
technology
115,000
235,000
125,000
150,000
190,000
250,000
Determine the best degree program in terms of projected income, using the following
decision criteria:
a. Maximax
b. Maximin
c. Equal likelihood
d. Hurwicz
e. The director of career advising at Orange Community College has paid a small fee to a
local investment firm to indicate a probability for each future economic condition over the
next 5 years. The firm estimates that there is a .20 probability of a recession, a .40
probability that the economy will be average, a .30 probability that the economy will be
good, and a .10 probability that it will be robust. Using expected value determine the best
degree program in terms of projected income. If you were the director of career advising,
which degree program would you recommend?
f. Develop a decision tree, with expected values at the probability nodes.
2.
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