7 ::A group of medical professionals is considering the construction of a private clinic. If the medical demand is high (i.e., there is a favorable market for the clinic), the physicians could realize a net profit of PHP 1,000,000.00. If the market is not favorable, they could lose PHP 400,000.00. Of course, they don't have to proceed at all, in which case there is no cost. In the absence of market data, the best the physicians can guess is that there is a 50-50 chance the clinic will be successful. Construct a decision tree and pay-off table to help analyze this problem. What should the physicians do?

5;Linear programming models are used by many listed rms in the Shanghai Stock Exchange to select a desirable bond portfolio. The following is a simplied version of such a model. WWCompany is considering investing in four bonds with RMB 100,000,000,000.00 available for investment. The expected annual return, the worst-case annual return on each bond, and the \"duration\" of each bond are given in the table below. The duration of a bond is a measure of the bonds sensitivity to interest rates. WWCompany wants to maximize the expected return from its bond investments subject to the following constraints: (1) the worstcase return of the bond portfolio must be at least 8 percent; (2) the weighted average duration of the portfolio must be at most 6; and (3) because of the diversication requirements, at most 40 percent of the total amount invested can be invested in a single bond. Expected Annual Return (in %) Worst-Case Annual Return (in %) Duration Bond 1 (PEK) 13 Bond 2 (CAN) Bond 3 (PVG) Bond 4 (XIY) Formulate an LP that will enable WWCompany to maximize the expected return on its investment. 6_:J:che you have the opportunity to earn some extra credit on your midterm examination grade. Select whether you want 5 m or 10 points added to your raw midterm exam score. But mate's a small catch, if more than 20% of the class selects 10 points (you are 20 in class, that means, 4 of you), then no one gets any points. Your responses will be anonymous to the rest of the class, only I will see the W