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A stock investment firm is considering 4 decision alternatives, with payoffs 1 point heavily affected by the outcome of a new bill in Congress which
A stock investment firm is considering 4 decision alternatives, with payoffs 1 point heavily affected by the outcome of a new bill in Congress which has 60% chance to get approved, see below. Using the Expected Value approach, obtain the Optimal Decision and corresponding Expected Value. Show work in yellow area below Congress Does Not Congress Approve Approves Bill Bill Buy more 12 Keep all 10/ Keep half, sell half 8 5 Sell all 10 2 points Conduct a sensitivity analysis using Excel's Data Table, with similar columns to the ones we developed in class: First column: Prob of Congress Approves Bill, with values ranging from 0 to 1 by .1 increments -Second column: Optimal Decision -Third column: Expected Value Place Sensitvity Table inside the yellow area below Land Class Land Category Commodity Volume 2018-04-01 Federal Onshore Coal Prod Vol (tons mill) 22.44 Onshore Coal Prod Vol (tons mill) 30.45 2018-05-01 Federa Onshore Coal Prod Vol (tons mill) 22.51 Federal Coal Prod Vol (tons mill) 26.76 2018-06-01 Federal Onshore Coal Prod Vol (tons mill) 24.85 Federal Onshore 2018-07-01 Federal Coal Prod Vol (tons mill) 26.63 Onshore Coal Prod Vol (tons mill) 24.86 Onshore Federal Onshore Coal Prod Vol (tons mill) 27.56 Federal Onshore Coal Prod Vol (tons mill) 23.77 2018-08-01 Federal Federal Coal Prod Vol (tons mill) 26.34 2018-09-01 Federal Coal Prod Vol (tons mill) 29.72 Onshore Onshore Coal Prod Vol (tons mill) 26.73 Federal Onshore Coal Prod Vol (tons mill) 26.86 2018-10-01 Federal Onshore Coal Prod Vol (tons mill) Onshore Coal Prod Vol (tons mill) 26.93 Federal Onshore 29.69 2018-11-01 Federal 28.36 Federal Onshore Coal Prod Vol (tons mill) 2018-12-01 Federal Onshore Coal Prod Vol (tons mill) Federal 27.22 2019-01-01 Federal Onshore Coal Prod Vol (tons mill) 28.98 Onshore Coal Prod Vol (tons mill) Federal Onshore Coal Prod Vol (tons mill) 27.48 2019-02-01 Federal Onshore Coal Prod Vol (tons mill) 22.82 Onshore Coal Prod Vol (tons mill 26.34 2019-03-01 Federal Onshore Coal Prod Vol (tons mill) 18.33 Federa Onshore Coal Prod Vol (tons mill) 25.74 Federa Onshore Coal Prod Vol (tons mill) 26.14 2019-04-01 Federal 24.63 2019-05-01 Federal Coal Prod Vol (tons mill) Federal Onshore Onshore 24.07 Coal Prod Vol (tons mill) Federal Onshore Coal Prod Vol (tons mill) 25.2 2019-06-01 Federal Onshore Coal Prod Vol (tons mill) 22.17 Coal Prod Vol (tons mill) 24.79 Federal Onshore Coal Prod Vol (tons mill) 25.65 2019-07-01 Federal Onshore 2019-08-01 Federal Onshore Coal Prod Vol (tons mill) 27.97 2019-09-01 Federal Onshore Coal Prod Vol (tons mill) 25.45
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