de information to help students decide which 2-year degree program they s director has set up the following payoff table for six of the most popular and s programs at OCC that shows the estimated 5-year gross income ($) from ea uture economic conditions: Economic Conditions ee Program Recession Average Good Robust mic design 145,000 175,000 220,000 260,000 150,000 180,000 205,000 215,000 ng estate 115,000 165,000 220,000 320,000 130,000 180,000 210,000 280,000 cal technology ary technology 115,000 145,000 235,000 305,000 uter information hnology 125,000 150,000 190,000 250,000 rmine the best degree program in terms of projected income, using the follow ia: Taximax Maximin qual likelihood urwicz (a = .50)
de information to help students decide which 2-year degree program they s director has set up the following payoff table for six of the most popular and s programs at OCC that shows the estimated 5-year gross income ($) from ea uture economic conditions: Economic Conditions ee Program Recession Average Good Robust mic design 145,000 175,000 220,000 260,000 150,000 180,000 205,000 215,000 ng estate 115,000 165,000 220,000 320,000 130,000 180,000 210,000 280,000 cal technology ary technology 115,000 145,000 235,000 305,000 uter information hnology 125,000 150,000 190,000 250,000 rmine the best degree program in terms of projected income, using the follow ia: Taximax Maximin qual likelihood urwicz (a = .50)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 de-
gree 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
145,000
175,000
220,000
260,000
Graphic design
Nursing
Real estate
150,000
180,000
205,000
215,000
115,000
165,000
220,000
320,000
Medical technology
130,000
180,000
210,000
280,000
115,000
145,000
235,000
305,000
Culinary technology
Computer information
technology
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 (α = .50)
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