table (see below), and support your final statement with areason.Be sure to show all work, indicate the recommended alternativeeach time, provide a summary table (see below),and support your final statement with a reason.Expected Table Format: See bellowDMUU:Letter/ValueReasonPerfect Optimism:Perfect PessimismOptimismat a=Equal Likelihood:Minimizing Regret:Overall Choice/ Reason: ALTERNATIVESFiVLreason.Portfolio UPortfolio VPortfolioWRecession$25$ 47$50.3Inflation$75$ 70$ 80TES OF NATUREDepressionSTA$0$-5$-15.21. DMUU: What would be the decision accordingto: (1) Maximax (optimism); (2) Maximin (pessímísm); (3) Realism where Alpha - α = .7 (4) Equal Likelihood;and (5) Minimizing Regret? Be sure to show work, indicatethe recommended alternative each time, provide a summary.table_(see below), and support your final statement with aBe sure to show all work, indicate the recommended alternativeeach time, provide a summary table (see below),and support your final statement with a reason.

NOTE: “Since you have posted a question with multiple sub-parts, we will solve the first three…

ALTERNA TIVES Fi VL Portfolio U Portfolio V Portfolio W Recessi on $25 $ 47 $50 .3 n Inflatio Depressi $75 $ 70 $80 TES OF N 5 ATURE on $0 $-5 $ 15 - .2 1. DMUU: What would be the decision according to: (1) Maximax (optímísm); (2) Maximin (pessimism); (3) R ealism where Alpha - α = .7 (4) Equal Likelihood; and (5) Minimizing Regret? Be sure to show work, indicate the recommended alternative each time, provide a summary table (see below), and support your final statement with a

ALTERNA TIVES Fi VL Portfolio U Portfolio V Portfolio W Recessi on $25 $ 47 $50 .3 n Inflatio Depressi $75 $ 70 $80 TES OF N 5 ATURE on $0 $-5 $ 15 - .2 1. DMUU: What would be the decision according to: (1) Maximax (optímísm); (2) Maximin (pessimism); (3) R ealism where Alpha - α = .7 (4) Equal Likelihood; and (5) Minimizing Regret? Be sure to show work, indicate the recommended alternative each time, provide a summary table (see below), and support your final statement with a

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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True or False: If you make sound financial decisions, you'll be able to live within your means. O True O False
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Tyler buys a futures contract from Alex that gives him the right to buy 1,000 barrels of oil at $125 per barrel in 48 months. What happens in 48 months if the actual price per barrel of oil is $100? A.) Tyler must pay Alex $25,000. B.) Tyler makes a profit of $25 per barrel, or $25,000. C.) The contract becomes void because the price turned out lower than expected. D.) Alex must give Tyler $10,000.
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