MBA 5123 Assessment Exam (50 points) Question 1: Decision analysis problem. USE THE CHART TO ANSWER THE FOLLOWING DECISION ANALYSIS QUESTIONS: A concessionaire for the local ballpark is questioning whether to stock his concession with a large, average, or small inventory. He believes that it will depend upon the size of the crowd. He has developed a payoff matrix for the various alternatives (stocking decision) and states of nature (size of crowd). States of Nature (size of the crowd) Alternatives Large Average Small Large Inventory $22,000 $12,000 -$1,000 Average Inventory $15,000 $10,000 -$3,000 Small Inventory $9,000 $6,000 $5,000 What is the selection you would make using the MAXIMIN criterion? What is the selection you would make using the hurwicz (realism) criterion (NOTE: use .6 for alpha)? What is selection you would make using the minimax regret criterion? Assume probabilities associated with the states of nature were known and are .30 for a large crowd, .50 for an average crowd, and .20 for a small crowd. What is the Expected Monetary Value (EMV)