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n IE undergraduate named Diana must decide between accepting graduate ssistantships in the Ph.D. programs at Georgia Tech or at Texas A&M. Both the T
n IE undergraduate named Diana must decide between accepting graduate ssistantships in the Ph.D. programs at Georgia Tech or at Texas A\&M. Both the T and TAMU assistantships cover all tuition and fees every semester. In ddition, GT pays $2300 per month after all payroll deductions while TAMU pays 1900 per month after deductions. Attending TAMU at College Station will cost 1200 in living expenses per month with probability 0.4 and $1500 per month with obability 0.6, depending on the weather. However, GT in downtown Atlanta will st $1400 in living expenses per month with probability 0.8 and $1800 with obability 0.2. In addition, the average transportation cost for travel back home Arlington will be $150 per month from GT but only $50 from TAMU. (a) Draw a decision tree on the next page and decide whether Diana should accept an assistantship from Georgia Tech or Texas A\&M based ONLY on the average monthly amount of discretionary income (the amount of income remaining after taxes and the necessary expenses above have been paid). State your answer in the box below. (b) Next use appropriately either a maximin or minimax criterion on her expected monthly discretionary income to decide whether Diana should accept an assistantship from GT or from TAMU. State your answer in the box below and show your work on the next page. n IE undergraduate named Diana must decide between accepting graduate ssistantships in the Ph.D. programs at Georgia Tech or at Texas A\&M. Both the T and TAMU assistantships cover all tuition and fees every semester. In ddition, GT pays $2300 per month after all payroll deductions while TAMU pays 1900 per month after deductions. Attending TAMU at College Station will cost 1200 in living expenses per month with probability 0.4 and $1500 per month with obability 0.6, depending on the weather. However, GT in downtown Atlanta will st $1400 in living expenses per month with probability 0.8 and $1800 with obability 0.2. In addition, the average transportation cost for travel back home Arlington will be $150 per month from GT but only $50 from TAMU. (a) Draw a decision tree on the next page and decide whether Diana should accept an assistantship from Georgia Tech or Texas A\&M based ONLY on the average monthly amount of discretionary income (the amount of income remaining after taxes and the necessary expenses above have been paid). State your answer in the box below. (b) Next use appropriately either a maximin or minimax criterion on her expected monthly discretionary income to decide whether Diana should accept an assistantship from GT or from TAMU. State your answer in the box below and show your work on the next page
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