OM3020 Homework Assignments (1-9) Determine the best investment, using the following decision criteria. a. Maximax b. Maximin C. Minimax regret d. Hurwicz (a= .4) e. Equal likelihood f. Assume the probabilities for the gasoline shortage, stable supply and surplus are 5,3 and 2, compute the expect value (payoff) of each investment option, the expected opportunity loss of each investment option, and the expect value of perfect information. Based on the expected value or expected opportunity loss, decide the best investment option 2. Given the following sequential decision tree, determine which is the better investment, A or B. $300,000 (-$20,000) $60,000 8 $45,000 Investment A (-$70,000) 20 $75,000 (-$17.000) $200,000 80 $70,000 $60,000 $105,000 (-$9,000) $40,000 Investment B $50,000) $55.000 30 $80,000 Note: show the intermediate steps of calculating expected value (payoff) for each node and also list your results at each node (you may need to draw the decision tree diagram) DOLL OM3020 Homework Assignments (1-9) Determine the best investment, using the following decision criteria. a. Maximax b. Maximin C. Minimax regret d. Hurwicz (a= .4) e. Equal likelihood f. Assume the probabilities for the gasoline shortage, stable supply and surplus are 5,3 and 2, compute the expect value (payoff) of each investment option, the expected opportunity loss of each investment option, and the expect value of perfect information. Based on the expected value or expected opportunity loss, decide the best investment option 2. Given the following sequential decision tree, determine which is the better investment, A or B. $300,000 (-$20,000) $60,000 8 $45,000 Investment A (-$70,000) 20 $75,000 (-$17.000) $200,000 80 $70,000 $60,000 $105,000 (-$9,000) $40,000 Investment B $50,000) $55.000 30 $80,000 Note: show the intermediate steps of calculating expected value (payoff) for each node and also list your results at each node (you may need to draw the decision tree diagram) DOLL