Question Set 1. Microsoft is considering different R&D paths for the upcoming years release. The five strategies (along with changing nothing) under consideration are:

Decrease Depth: Decrease the width of the phones without changing other specs

Smaller Battery: Decrease battery capacity of phones by 7%

Mixed: Combine above two strategies

Larger Battery: Increase battery capacity of phones by 6%

No Change: Do not change anything, buyers seem content

The outcomes of the possible strategies (in millions of dollars) depend on how the competitors behave. Microsoft considers four different outcomes, which are not shared, but we will call them as scenarios 1, 2, 3 and 4. Negative values indicate loss for Microsoft and positive values indicates possible profits.

	Scenarios
Strategy	1	2	3	4
Decrease Depth	-60	-20	60	65
Smaller Battery	-55	-30	45	55
Mixed	-50	-25	40	70
Larger Battery	-40	-25	35	60
No Change	-40	-35	40	40

For the following questions, you will use Excel to identify the best strategy according to various criteria. You only need to perform the necessary calculations to show which one is best. For example, the first question is for maximax. You need to set up formulas to find the maximum payoff for each strategy and to then find the highest value among them. However, once you have calculated that highest value, you can just type in the corresponding strategy without any further Excel calculations.

1. What would be Microsofts decision using the maximax criterion? (3pts)

2. What would be Microsofts decision using the maximin criterion? (3pts)

3. What would be Microsofts decision using the Laplace criterion? (3pts)

4. What would be Microsofts decision using the minimax regret criterion? It is most helpful to construct a regret table for this problem. (6pts)

Question Set 2. This question set uses the table of outcomes from Question Set 1 for Microsofts strategies. Assume that the probabilities for scenarios are:

P(Scenario 1) = 0.15

P(Scenario 2) = 0.25

P(Scenario 3) = 0.20

P(Scenario 4) = 0.40

1. What decision will maximize Googles expected monetary value? (9pts)

2. What is the expected value of perfect information? (6pts)

Please give only the correct answer and please do it in excel sheet only. and post the answers with the correct formula and screenshot of excel sheets