Student Portal | Student Ledger X 5 BUS-660 Class Resources X "CengageNOWv2 | Online teachin x + X C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Topic 1 - Decision Analysis - Homew Following is the payoff table for the Pittsburgh Development Corporation (PDC) Condominium Project. Amounts are in millions of dollars. ? 1. Problem 4-11 (Algorithmic) State of Nature 2. Problem 4-23 (Algorithmic) Decision Alternative Strong Demand S1 Weak Demand Sz 3. Problem 4-17 Small complex, 01 9 7 Medium complex, d2 13 3 4. Problem 4-15 Large complex, d3 21 -9 5. Problem 4-25 Suppose PDC is optimistic about the potential for the luxury high-rise condominium complex and that this optimism leads to an initial subjective 6. Problem 4-07 probability assessment of 0.8 that demand will be strong (S1) and a corresponding probability of 0.2 that demand will be weak ($2). Assume the decision alternative to build the large condominium complex was found to be optimal using the expected value approach. Also, a sensitivity analysis was 7. Problem 4-05 (Algorithmic) conducted for the payoffs associated with this decision alternative. It was found that the large complex remained optimal as long as the payoff for the strong demand was greater than or equal to $16 million and as long as the payoff for the weak demand was greater than or equal to -$29 million. 8. Problem 4-21 (Algorithmic) a. Consider the medium complex decision. How much could the payoff under strong demand increase and still keep decision alternative dy the optimal solution? If required, round your answer to two decimal places. The payoff for the medium complex under strong demand remains less than or equal to $ million, the large complex remains the best decision. b. Consider the small complex decision. How much could the payoff under strong demand increase and still keep decision alternative d3 the optimal solution? If required, round your answer to two decimal places. The payoff for the small complex under strong demand remains less than or equal to $ million, the large complex remains the best decision. PDF BUS-660-0500 TO..pdf Show all X 40 F 11:17 PM O Search Clear 3/13/2023 18Student Portal | Student Ledger X 5 BUS-660 Class Resources X "CengageNOWv2 | Online teachin x + X C A v2.cengagenow.com/ilmn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Topic 1 - Decision Analysis - Homew ? 1. Problem 4-11 (Algorithmic) eBook 2. Problem 4-23 (Algorithmic) Problem 4-23 (Algorithmic) Suppose that you are given a decision situation with three possible states of nature: $1, $2, and $3. The prior probabilities are P(S1) = 0.21, P($2) = 0.47, 3. Problem 4-17 and P(S3) = 0.32. With sample information I, P(I | $1) = 0.14, P(I | $2) = 0.06, and P(I | $3) = 0.20. Compute the revised or posterior probabilities: P($1 [ D), P(S2 | [), and P(S3 | [). If required, round your answers to four decimal places. 4. Problem 4-15 State of Nature P (S;II) 5. Problem 4-25 S1 6. Problem 4-07 52 S3 7. Problem 4-05 (Algorithmic) Total Probability 8. Problem 4-21 (Algorithmic) PDF BUS-660-0500 TO..pdf Show all X 40 F 11:18 PM Search A Clear 3/13/2023 18