In Topic 1: Decision Analysis of Module 2, the importance of using the six steps to follow in decision making was discussed. In addition, as part of the theme, the criteria to be used in decision-making under uncertainty were discussed. In this work, the student will a real modeling scenario of a hypothetical situation between establishing a clothing sales business or a shoe sales business. It will apply the use of the steps to follow in decision-making and the criteria of situations of uncertainty.

Instructions:

Using the six steps of decision making, model a problem that requires the use of decision making in an environment of uncertainty.

The data is found in the following Table. The student will assume that these data come from the company. Table: Data: Clothing sales vs. shoe sales

Name Business	Alternative	State Nature
	Favorable market ($)	Unfavorable Market ($)
Probability	.50	.50
Clothing for sale	350,000	-250,000
Sales shoes	75,000	-30,000
Do nothing	0	0

1. Using your creativity, you are going to give a name and location for both businesses. 2. You must explain each step using the Table: Modeling in a Real Scenario: Uncertainty, which is included later, the closest to a real situation. 3. You will evaluate decision making taking into consideration the following criteria: a. Maximax (optimistic) b. Maximin (pessimist) c. Realism criterion (Hurwicz) (You can use .80 as a base) d. equally likely (Laplace) e. Regret Minimax f. Expected Monetary Value g. Perform and present the exercise calculations with: Decision Table and Decision Tree

To estimate these criteria, the Excel QM or QM for Windows tool will be used.

Table: Modeling of a Real Scenario: Uncertainty

Modeling in a Real Scenario: Uncertainty (Name of company/companies)
Passed	Description
Definition of the problem
List alternatives
Identify possible outcomes
List returns
Select decision model
Apply the model to the data
Note: Next to this Table, attach results from the Excel Qm or QM for Windows programs that served as a support tool in decision-making for modeling a real scenario in uncertainty.

You must contribute 2 academic sources, you must follow the format and be cited in accordance with current APA regulations.