Monday, January 11, 2021 11:59 PM 10 10 BOTH DMUU & DMUR on the LINK ONLY Be sure to include: Work, Summary Tables, and Supporting Conclusions! This practice is similar to your TEST 1-- PRACTICE 4 Consider the following decision matrix presenting net profit/loss estimates regarding an investment project: Values in MILLIONS DEMAND LOW MEDIUM HIGH EQUIPMENT USED Small 3 7 11 Medium 5 7 9 Large 7 8 9 1. DMUU: Considering that the probabilities applicable to demand are not known, show the decision recommendations from the points of view of perfect optimism; perfect pessimism; optimism at a 6; conservatism (equal likelihood); and minimization regrets. Do you see a pattern? If so, which equipment would you choose? Explain. 2. DMUR: Consider now that the probabilities for demand being low, medium and high have been calculated as .30, 50, and .20, respectively. By using a decision tree, find the expected value, the standard deviation, and the coefficient of variation for each size of equipment. Which size of equipment would you recommend on the basis of each of the three coefficients of variation that you calculated? 3. NORMAL DIST: Referring to the Z-Table, calculate the probability that each alternative (each different equipment) will turn out at LEAST a $ 8 profit? What is the likelihood that each alternative will produce a profit of at MOST S 7? Reminder: POST ON THE LINK-WORK, SUMMARY TABLES, AND CONCLUSIONS WITH REASONS! FAIR WARNING: In each exercise during the course, there is always a tweak (change in format or a number here or a number there) from previous semesters. Solve and answers the questions posted. Realize that similar questions may not have the correct answers or format! You will be heavily penalized for plagiarism