business analytics 2

Amy Lloyd is interested in leasing a new car and has contacted three automobile dealers for pricing information. Each dealer offered Any a dose en 36 monthlease with no down payment du the time of signing. Each lease includes a monthly charge and a mileage allowance. Additional receive a surcharge on a permite basis. The monthly ease cost, the mileage and the cost for additional miles follow Dealer Monthly Cost Mileage Cost per Allowance Additional Mile Dealer $209 36,000 10.15 Dealer 45,000 $300 $315 30:20 10.15 Dealer 54,000 Amy decided to choose the case option that will minimize her total 36-month cost. The duty the Assure how many we will drive over the next three years. For purposes of decision she believes it is reasonable to assume that she will drive 12,000 miles per ye15,000 miles per year, or 18,000 miles per year with this to any time he total costs for the three lease options. For example, she figures that the Dealer Alease will cost her 366289) + $0.15036.000 - 50.000) - $10,404 if she drives 12,000 miles per year, 365209) + 0.15(45.000 36,000) - $11,754 if she drives 15,000 miles per year, or 36($289) + $0.15154,000 - 36,000) - $13,104 she drives 18,000 miles per year. (a) What is the decision, and what is the chance event? The decision is to choose Select There are alternatives. The chance event is --Select There are possible outcomes (6) Construct a payoff table. (Enter your answers in sy Annual Miles Driven Dealer 12,000 15,000 18,000 Dealer A $10,404 $11,754 $13,104 Dealers $ $ Dealers $ (0) I Amy has no idea which of the three mileage assumptions is most appropriate, what is the recommended dedsion (leasing option) using the optimistic, conservative, and minimax regret approaches? The recommended decision using the optimistic approach is Select The recommended decision using the conservative coproach is Solec The recommended decision ng the minimax regret approach is select (a) suppose that the probabilities that Amy drives 12,000, 15,000, and 18,000 miles per year are 0.5, 0.4, and 0.1, respectively, what option should Amy choose using the expected value approach? EV Dealer A) - 5 EV(Dealer B) = 5 EVI Dealer) - 5 The best decision is (e) DO NOT DO THIS SECTION OF THE QUESTION Develop a risk profile for the decision selected in part(d), what is the most likely cos, and what is its probability (submit a tle with a maximum sve of 1 MB) Choose File Na fie chosen This has not been graded yet Suppose that after further consideration Amy condudes that the probabilities that she will drive 12,000, 15,000, and 18,000 miles per year are 0.3.0.4 and 0.), respectively, what decision should Ammy make using the expected value approach EV(Dealer A) EV(Dealer ) EV(Dealer C) 5 The best decision is 5