learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com C + Content Bb https://learn-us-east-1-prod-fleet02-xythos.content.blackboardcdn.com/5c082fb7a0cdb/37629282?X-Blackboard-Expiration=1669.. Quick end $32,000 Buy Oil stocks 2 Long duration $10,000 1 Quick end $12,000 Buy online tech stock 3 Long Duration $28,000 Place money in GIC $11,500I] learnsenecacollegeca @336 (9 LI] + I Content iii i' t . w m ,, mm Question Completion Status: QUESTION 1 1 points Save Answer The next several questions refer to this situation and diagram. You are considering three different investment options (d1 buy oil stocks, d2 buy online tech stocks, and d3 place money in a GIC). How each investment will perform depends on how long the COVlD-19 situation persists. If it goes on for a long time (s2), oil stocks will continue to do very poorly (payoff of -1 0000), while online tech stocks will do well (payoff of 28000); the situation is reversed if the outbreak resolves quickly (s1) (payoff of 32000 for oil and 42000 for tech). The return for the GIC, being 'guaranteed', is not random (payoff of 115000). You have estimated the probability ofa quick end P(s1) = 0.37. while P(sz) = 0.63. The diagram for the situation is here: gnment 2 decision tree . questionpf Using the tree, determine the best investment choice using the EMV criterion. (Note that the green triangles are terminal nodes (leaves) you don't need to do any calculation there!) You will enter information from your solution in this and the next several questions. What is the EMV for node 27 QUESTION 2 1 points Save Answer This question continues from the situation above. What is the EMV for node 3'? QUESTION 3 1 points Save Answer This question continues from the situation above. What is the EMV for node 1'? Click Save and Submit to save and submit Click Save AlIAnswers to save all answers. Save All Answers Save and Submit D Q learnsenecacollege'ca km W: 34 I Content 'E' i' :4 1 , . mt, Question Compietian Status: 1 points Save Answer QUESTION 4 This question continues from the situation above. What is the appropriate decision, based on the EMV criterion? Buy oil stocks Buy online tech stock Place money in GIC None of the above Can't tell A combination of actions QUESTION 5 2 points Save Answer This question continues from the situation above. Create a payoff table for this situation. Enter your table into the box (You might find if you copy your table from Excel/Word it copies the table format as well.) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac), B I U '5- Paragraph V Arial V 10pt V E V E V AV I V I; X El 0 WORDS POWERED BY TlNY Click Save and Submit to save and submits Click Save AlIAnswers to save all answers. Save All Answers Save and Submit D learnsenecacollegeca @336 (.1) LI] + 'Content lElw .317 . , . , :ll W l _ , remm Question Completion Status: QUESTION 6 1 points Save Answer This question continues from the situation above. What is the EVwPl'? QUESTION 7 1 points Save Answer This question continues from the situation above. What is the EWPI? QUESTION 8 1 points SaveAnswer The next several questions refer to this situation. The city of Kingston has decided to build a new large venue event centre (LVEC) for conventions, concerts, and other public events, but considerable controversy surrounds the appropriate size. Many inuential citizens want a large center that would be a showcase for the area, but the mayor feels that if demand does not support such a center, the community will lose a large amount of money. To provide structure for the decision process, the council narrowed the building alternatives to three sizes: small, medium, and large. Everybody agreed that the critical factor in choosing the best size is the number of people who will want to use the new facility. A regional planning consultant provided demand estimates under three scenarios: worst case, base case, and best case. The worst-case scenario corresponds to a situation in which tourism drops signicantly; the base-case scenario corresponds to a situation in which Kingston continues to attract visitors at current levels; and the best-case scenario corresponds to a signicant increase in tourism. The consultant has provided probability assessments of .39, .41, and .2 for the worst-case, base-case, and best-case scenarios, respectively. The city council suggested using net cash ow over a ve-year planning horizon as the criterion for deciding on the best size. A consultant developed the following projections of net cash ow (in millions of dollars) for a veyear planning horizon. All costs are included. Click Save and Submit to save and submit. Click Save AlIAnswers to save all answers. Save All Answers Save and Submit I] learnsenecacollegeca @336 (9 LI] + 'Content lElw ,Jtr . . . . :ll w l _ ., mm Question Completion Status: The city of Kingston has decided to build a new large venue event centre (LVEC) for conventions, concerts, and other public events, but considerable controversy surrounds the appropriate size. Many inuential citizens want a large center that would be a showcase for the area, but the mayor feels that if demand does not support such a center, the community will lose a large amount of money. To provide structure for the decision process, the council narrowed the building alternatives to three sizes: small, medium, and large. Everybody agreed that the critical factor in choosing the best size is the number of people who will want to use the new facility A regional planning consultant provided demand estimates under three scenarios: worst case, base case, and best case. The worst-case scenario corresponds to a situation in which tourism drops signicantly; the base-case scenario corresponds to a situation in which Kingston continues to attract visitors at current levels; and the best-case scenario corresponds to a signicant increase in tourism. The consultant has provided probability assessments of .39, .41, and .2 for the worst-case, basecase, and best-case scenarios, respectively. The city council suggested using net cash ow over a ve-year planning horizon as the criterion for deciding on the best size. A consultant developed the following projections of net cash flow (in millions of dollars) for a ve-year planning horizon. All costs are included. Demand Scenario Center Size Worst Case Base Case Best Case Small 3 4 5 Medium 1 5 8 Large -6 1 13 Answerthe following questions based on this situation. What decision should Kingston make using the maximin approach? Small Medium Large QUESTION 9 1 points Save Answer This question continues from the situation above. What decision should Kingston make using the maximax approach? Small Medium Click Save and Submit to save and submits Click Save AlIAnswers to save all answers. Save All Answers Save and Submit I] learnsenecacollegena @336 (9 LI] + I Content lEl l' t. , , l m ,, wast Questlon Completion Status: QUESTION 9 1 points SaveAnswer This question continues from the situation above. What decision should Kingston make using the maximax approach? Small Medium Large QUESTION 10 2 points Save Answer This question continues from the situation above. What decision should Kingston make using the expected value approach? Small Medium Large QUESTION 11 1 points Save Answer This question continues from the situation above. What is the expected value of the Choice you made in the question above? (Give your answer to two decimal places.) QUESTION 12 1 points Save Answer This question continues from the situation above. What is the expected value with perfect information? (Give your answer to two decimal places.) Click Save and Submit to save and submit. Click Save AlIAnswers to save all answers. Save All Answers Save and Submit I] learnsenecacollegeca @136 (9 LI] + y Content iii r :4 l , - m, m: i L ,, err mm Question Completion Status: Medium Large QUESTION 11 1 points SaveAnswer This question continues from the situation above. What is the expected value of the choice you made in the question above? (Give your answer to two decimal places.) QUESTION 12 1 points Save Answer This question continues from the situation above. What is the expected value with perfect information? (Give your answer to two decimal places.) QUESTION 13 1 points Save Answer This question continues from the situation above. What is the expected value of perfect information? (Give your answer to two decimal places.) Click Save and Submit to save and submit. Click Save AllAnswers to save all answers. Save All Answers Save and Submit