Robin Pinelli is considering three job offers below with the following objectives: a. To maximize monthly disposal income, which can be measured directly by take-home pay amount after paying for housing, utilities, taxes & other necessities. b. To enjoy outdoor cold-weather sports in the winter, whose attribute can be indirectly measured by annual snowfall. c. To live in a quality community with a lot of activities and a large population of single professionals. To quantify the attribute of this objective, Robin has located a magazine survey which scores large cities as desirable places for singles to live.

1. Create a decision tree to represent Robins decision situation as described above. In the consequence matrix, construct a standard set of comparable scales to rate the three objective attributes such that the worst outcome has a rating of zero and the best has 100. (Ref. charts #20 & 22 for structure and format.)

2. After weighing the situation, Robin judges that the city quality is most important, the snowfall amount is next, and the third is income. As such, the weight of the magazine survey rating should be 1.5X that of the snowfall rating and 3X that of the income rating. Based on this information, determine

a. the weights of the three attributes (ref. chart #21);

b. the overall scores for all end branches of the decision tree (ref. chart #23).

3. Analyze the decision using expected values and risk profiles of the three job offers.

a. Compute expected values and create cumulative risk profiles for each of the three measures individually (ref. charts #17 & 18).

b. Compute expected value and create cumulative risk profile for the overall score (ref. chart #24).

4. What insight arise from the above decision analysis? What do you think Robin should do? Why?