4.1 questions:

a) Assuming the initial state to be H, obtain expected income values for each alternative and for periods oft=1,t=2, and t= infinity. Which project produces greater expected gain over time? b) When does steady state for the single criterion occur? What does it mean? 4.2) Consider Problem 2.2. Suppose there are three different investment alternatives of: Project A (al), Project B (az), or do nothing (az). The gains for the three alternatives are listed below. (Hint: you may use solutions obtained Problem 2.2) H M Project A (a) 300 100 -250 Project B (2) 200 50 -170 Do Nothing (az) 50 30 -50 Respond to questions a) and b) of Problem 4.1. L a) Assuming the initial state to be H, obtain expected income values for each alternative and for periods oft=1,t=2, and t= infinity. Which project produces greater expected gain over time? b) When does steady state for the single criterion occur? What does it mean? 4.2) Consider Problem 2.2. Suppose there are three different investment alternatives of: Project A (al), Project B (az), or do nothing (az). The gains for the three alternatives are listed below. (Hint: you may use solutions obtained Problem 2.2) H M Project A (a) 300 100 -250 Project B (2) 200 50 -170 Do Nothing (az) 50 30 -50 Respond to questions a) and b) of Problem 4.1. L