please help to solve. i inly know the final answers. unable ti get the solution
this is the answer ti the qn
(a) Bobby is considering three mutually exclusive investments: Investment A, Investment B. or Do nothing. The uncertain profits for investments A and B are as follows: Investment A Investment B Si million 0.5 Si million 0.4 0.6 0.5 50 g o $0.2 million 0,6 0.54 0.4 - 50.1 milli 0.5 $0.8 million 2 Plot the risk profile for all the three alternatives on a single graph and determine any dominance among them (8 marks) Under each of the following conditions, determine whether Bobby's optimal decision can be determined. If so, what is it? If not, what additional information is needed? (A) Bobby is risk neutral. (4 marks) (B) Bobby does not follow the della property but is risk averse (4 marks) (C) Bobby follows the delta property and has a negative risk tolerance. (4 marks) (b) The following pairwise comparison matrix was assessed for four altematives (Arto Aa) with respect to a criterion in an AHIP model: A: A 3 A: S A 3 A1 Az A: A 5 3 Determine the local weights for the four alternatives and indicate if the inconsistency of the assessments is within acceptable limits (5 marks) i. B deterministically dominates "Do nothing" B 2nd-order SD A ii. (A) B is preferred (B) B is preferred (C) No conclusion. Neet utility function. Question 1(b) Use RGM method. W = 0.5039, 0.0751, 0.1301, 0.2909 CI = 0.1267, CR = 0.14 > 10% Inconsistency not within acceptable limit. (a) Bobby is considering three mutually exclusive investments: Investment A, Investment B. or Do nothing. The uncertain profits for investments A and B are as follows: Investment A Investment B Si million 0.5 Si million 0.4 0.6 0.5 50 g o $0.2 million 0,6 0.54 0.4 - 50.1 milli 0.5 $0.8 million 2 Plot the risk profile for all the three alternatives on a single graph and determine any dominance among them (8 marks) Under each of the following conditions, determine whether Bobby's optimal decision can be determined. If so, what is it? If not, what additional information is needed? (A) Bobby is risk neutral. (4 marks) (B) Bobby does not follow the della property but is risk averse (4 marks) (C) Bobby follows the delta property and has a negative risk tolerance. (4 marks) (b) The following pairwise comparison matrix was assessed for four altematives (Arto Aa) with respect to a criterion in an AHIP model: A: A 3 A: S A 3 A1 Az A: A 5 3 Determine the local weights for the four alternatives and indicate if the inconsistency of the assessments is within acceptable limits (5 marks) i. B deterministically dominates "Do nothing" B 2nd-order SD A ii. (A) B is preferred (B) B is preferred (C) No conclusion. Neet utility function. Question 1(b) Use RGM method. W = 0.5039, 0.0751, 0.1301, 0.2909 CI = 0.1267, CR = 0.14 > 10% Inconsistency not within acceptable limit
