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Napoleon is contemplating four institutions of higher learning as options for a Masters in Business Administration. Each university has strong and weak points and the

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Napoleon is contemplating four institutions of higher learning as options for a Masters in Business Administration. Each university has strong and weak points and the demand for MBA graduates is uncertain. The availability of jobs, student loans, and financial support will have a significant impact on Napoleon's ultimate decision. Vanderbilt and Seattle University have comparatively high tuition, which would necessitate Napoleon take out student loans resulting in possibly substantial student loan debt. In a tight market, degrees with that cachet might spell the difference between a hefty paycheck and a piddling unemployment check. Northeastern State University and Texas Tech University hold the advantage of comparatively low tuition but a more regional appeal in a tight job market. Napoleon gathers his advisory council of Kip and Pedro to assist with the decision. Together they forecast three possible scenarios for the job market and institutional success and predict annual cash flows associated with an MBA from each institution. All cash flows in the table are in thousands of dollars. School Scenario 1 Scenario 2 Scenario 3 Vanderbilt 95 20 -10 Texas Tech 55 60 60 Seattle 90 10 80 Northeastern State 65 50 60 a. Kip tends to be extremely optimistic. Which decision making criterion would he naturally select and what conclusion would he recommend to Napoleon? b. Pedro is extremely pessimistic. Which decision making criterion would he naturally select and whatSeattle 90 10 80 Northeastern State 65 50 60 a. Kip tends to be extremely optimistic. Which decision making criterion would he naturally select and what conclusion would he recommend to Napoleon? b. Pedro is extremely pessimistic. Which decision making criterion would he naturally select and what conclusion would he recommend to Napoleon? Why? c. Summer bursts into the meeting and announces that there's another way to consider the issue. Since Napoleon will have to live with his choice for the rest of his life, he might consider selecting the alternative that will cause him the least pain in hindsight when he compares his outcome with what he might have gained. Which criterion is she talking about, what is the best school for this criterion, and why? d. Napoleon's Uncle Rico believes that the scenarios are not necessarily equally likely, and suggests that the likelihood of occurrence of Scenario 2 is 0.4 and the likelihood of occurrence of Scenarios 1 and 3 are both 0.3. What two criteria are most appropriate and what is the resulting decision

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