Using Excel Spreadsheet and formulas for this problem (make sure cell references are unique to your table). Provide all techniques practiced previously: five (5) techniques for Decisions Making under Uncertainty, EMV, EOL, and EVPI. Use α = 0.7 for the Hurwicz. Use the .50 for the probability of a Good Economy and .50 for the probability of a Poor Economy. Show the work on an Excel file. STATE OF NATUREDECISION ALTERNATIVEGOOD ECONOMYPOOR ECONOMYSotck market80,000-20,000Bonds30,00020,000CDs23,00023,000

Answered: Provide all techniques practiced…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Using Excel Spreadsheet and formulas for this problem (make sure cell references are unique to your table). Provide all techniques practiced previously: five (5) techniques for Decisions Making under Uncertainty, EMV, EOL, and EVPI. Use α = 0.7 for the Hurwicz. Use the .50 for the probability of a Good Economy and .50 for the probability of a Poor Economy. Show the work on an Excel file.

	STATE OF NATURE
DECISION ALTERNATIVE	GOOD ECONOMY	POOR ECONOMY
Sotck market	80,000	-20,000
Bonds	30,000	20,000
CDs	23,000	23,000

Expert Solution

Step 1: Introduce the decision making techniques

There are situations in the business that are uncertain and that make the decision-making complex. To help in making decisions in these situations, different techniques can be used. In the given question, the techniques that will be used to make decisions will be maximin, maximax, Laplace, Harwicz, EOL, EMV, and EVPI.

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