1. Fatima is a financial advisor who has recommended two possible mutual funds for investment: Fund A and Fund B. The return that will be achieved by each of these depends on whether the economy is good, fair, or poor. A payoff table has been constructed to illustrate this situation: (25 Marks)

Alternative:	Good Economy (BD)	Fair Economy (BD)	Poor Economy (BD)
Fund A	21000	4200	-11000
Fund A	13000	8100	-2200
No Investment	0	0	0
Probabilities	0.5	0.2	0.3

1. Determine the best decision using the following decision criteria assuming probabilities are not known: Maximax (2 Marks), Maximin (2 Marks), Minimax Regret (4 Marks) Total = (8 Marks)
2. Taking into account the given probabilities it is assumed that the decision making environment is risk based. Calculate the

1. Expected Monetary Value (Computation of Values = 5 Marks)
2. Expected Opportunity loss (Computation of Table = 5 Marks)
3. EVPI; (EVPI = EVwPI EMV) (2 Marks)
4. Develop a decision tree with expected values at the probability nodes (5 Marks)