The career counselor at Mountain Peak College has a tough job. She is expected to provide...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The career counselor at Mountain Peak College has a tough job. She is expected to provide information to help students decide which major they should take. The counselor knows that she can use quantitative analysis to help her with her work. She did a survey and came up with six most popular degree programs at her college. One of the biggest factors she considered was the "earning" power of the degree in four different economic conditions. The table below presents the information she collected on the degree programs. The amounts shown are 3-year gross salaries of the alumni she surveyed. During recession: During average economy: Game design engineer = $145k Game design engineer $175k Nursing = $150k Nursing = $180k Hospitality = $115k Hospitality = $165k Business = $130k Business = $180k Biotechnology = $115k Biotechnology = $145k Computer Science $125k Computer Science $150 During good economy: During a bullish economy: Game design engineer = $220k Game design engineer = $260k Nursing = $205k Nursing = $215k Hospitality = $220k Hospitality = $320k Business = $210k Business = $280k Biotechnology = $235k Biotechnology = $305k Computer Science $190k Computer Science = $250k The college offered to pay for a projection of the probability of each economic condition over the next 3 years. The research company estimated that: P(recession) = 0.20; P(average economy) = 0.40; P(good economy) = 0.30; P(bullish economy) = 0.10 1) Build the payoff table showing the 3-year gross salaries of the different careers. 2) Determine the best degree program in terms of the projected gross salary using the following approaches: o Maximax o Laplace o Hurwicz (a=.50) o Expected value 3) Determine what degree program the career counselor should recommend to the students. Explain your reasoning. The career counselor at Mountain Peak College has a tough job. She is expected to provide information to help students decide which major they should take. The counselor knows that she can use quantitative analysis to help her with her work. She did a survey and came up with six most popular degree programs at her college. One of the biggest factors she considered was the "earning" power of the degree in four different economic conditions. The table below presents the information she collected on the degree programs. The amounts shown are 3-year gross salaries of the alumni she surveyed. During recession: During average economy: Game design engineer = $145k Game design engineer $175k Nursing = $150k Nursing = $180k Hospitality = $115k Hospitality = $165k Business = $130k Business = $180k Biotechnology = $115k Biotechnology = $145k Computer Science $125k Computer Science $150 During good economy: During a bullish economy: Game design engineer = $220k Game design engineer = $260k Nursing = $205k Nursing = $215k Hospitality = $220k Hospitality = $320k Business = $210k Business = $280k Biotechnology = $235k Biotechnology = $305k Computer Science $190k Computer Science = $250k The college offered to pay for a projection of the probability of each economic condition over the next 3 years. The research company estimated that: P(recession) = 0.20; P(average economy) = 0.40; P(good economy) = 0.30; P(bullish economy) = 0.10 1) Build the payoff table showing the 3-year gross salaries of the different careers. 2) Determine the best degree program in terms of the projected gross salary using the following approaches: o Maximax o Laplace o Hurwicz (a=.50) o Expected value 3) Determine what degree program the career counselor should recommend to the students. Explain your reasoning.
Expert Answer:
Answer rating: 100% (QA)
1Payoff table States of nature economy Probability 02 04 03 01 Alternatives Recession Average Good Bullish Game design engineer 145 175 220 260 Nursin... View the full answer
Related Book For
College Physics
ISBN: 978-0495113690
7th Edition
Authors: Raymond A. Serway, Jerry S. Faughn, Chris Vuille, Charles A. Bennett
Posted Date:
Students also viewed these general management questions
-
A project you are considering is expected to provide benefits worth $225,000 in one year. If the risk-free rate of interest (r) is 8%, then the value of the benefits of this project today are closest...
-
A new asset is expected to provide service over the next four years. It will cost $500,000, generates annual cash inflows of $150,000, and requires cash operating expenses of $30,000 each year. In...
-
Vol, Inc. FCF\'s over the next 3 years are projected to be FCF1 = $5.00 Million, FCF2 = $5.00, FCF3 = $8.00 and free cash flows are projected to grow at 4% per year thereafter. Vol, Inc. also has the...
-
What functions are normally associated with the production cycle?
-
Describe how employer-sponsored retirement plans work in general.
-
The piston/cylinder in Fig. P3.179 contains 0.1 kg R-410a at 600 kPa, 60C. It is now cooled, so the volume is reduced to half of the initial volume. The piston has upper stops mounted, and the piston...
-
What are convertible bonds? What are the primary reasons for their use?
-
William Bryant is the new owner of Ace Computer Services. At the end of August 2012, his first month of ownership, Bryant is trying to prepare monthly financial statements. Below is some information...
-
Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price Direct materials Direct labor...
-
On January 2, 2020, Brook Company acquired machinery by issuing a 3%, $360,000 note due in five years on December 31, 2024. Annual payments are $78,608 each December 31. The payment schedule is:...
-
If a large company with a significant public profile was being sued because of a drug product failure that dramatically impacted a young child, and it was apparent that company employees had...
-
3. Three point-like charges are placed at the corners of a square as shown in the figure, 32.0 cm on each side. Find the magnitude of the net electrostatic force exerted on the point charge q2. Let...
-
Read the Janes' Electronics, Inc. case at the end of the exam and answer the following questions. Assume that you are preparing to bid on the audit and are working on your client acceptance issues....
-
EXECUTIVE SUMMARY You are a Business Analyst at Simcoe Skies, a regional airline with operations across Eastern Canada (note: this is a fictitious company). Simcoe Skies has received numerous...
-
Reply to each of these posts as if they were your classmate. What opinions would you like to say or mention to them? Post 1: 1.) The one brand that I was surprised to see at a lower rank was...
-
Explain which Distribution Strategy On Running uses and reflecting on this strategy, discuss reasons why Torpedo7 MAY NOT BE an appropriate intermediary for On Running in the New Zealand market. ...
-
Watch help video f(x)={((x+4)^(2)-5 for x!=-5),(1 for x=-5):} Find f(-5) Answer: Submit Answer 2 answers
-
Choose two matrices A and B with dimension 2 x 2. Calculate det A, det B, and det (AB). Repeat this process until you are able to discover how these three determinants are related. Summarize your...
-
A hiker stands on a mountain peak near sunset and observes a rainbow caused by water droplets in the air about 8.00 km away. The valley is 2.00 km below the mountain peak and entirely flat. What...
-
A transmission line that has a resistance per unit length of 4.50 x 104 /m is to be used to transmit 5.00 MW over 400 miles (6.44 x 105 m). The output voltage of the generator is 4.50 kV (rms). (a)...
-
Two converging lenses, each of focal length 15.0 cm, are placed 40.0 cm apart, and an object is placed 30.0 cm in front of the first lens. Where is the final image formed, and what is the...
-
How are fixed and current assets distinguished from one another?
-
List four different types of current asset.
-
Write out the full accounting equation.
Study smarter with the SolutionInn App