The following payoff table provides profits based on various possible decision alternatives and various levels of demand.

Use this table to answer the following questions:

Question 1 (1 point)

Saved

What decision would an optimist make?

Question 1 options:

Alternative 2

Alternative 3

Alternative 1

None of the answers provided is correct

Question 2 (1 point)

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What decision would a pessimist make?

Question 2 options:

Alternative 1

Alternative 3

Alternative 2

None of the answers provided is correct

Question 3 (1 point)

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The probability of a low demand is 0.4, while the probability of a medium and high demand is each 0.3. What is the expected monetary value (EMV) of alternative 1?

Question 3 options:

90

86

110

None of the answers provided is correct

Question 4 (1 point)

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The probability of a low demand is 0.4, while the probability of a medium and high demand is each 0.3. What is the highest possible expected monetary value (EMV)?

Question 4 options:

86

90

110

None of the answers provided is correct

Question 5 (1 point)

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What is the expected value WITH perfect information for this situation?

Question 5 options:

110

None of the answers provided is correct

7

117

Question 6 (1 point)

What is the expected value OF perfect information for this situation?

Question 6 options:

	117
	7
	None of the answers provided is correct
	110

Opportunity Loss

Use the data given above to complete the Opportunity loss table below:

Question 7 (1 point)

What is the opportunity loss for Alternative 2 when the demand is high?

Question 7 options:

0

10

60

50

Question 8 (1 point)

What is the best alternative based on the Minimax Regret criterion?

Question 8 options:

None of the answers provided is correct

Alternative 1

Alternative 3

Alternative 2

Question 9 (1 point)

The probability of a low demand is 0.4, while the probability of a medium and high demand is each 0.3. What is the Expected Opportunity Loss (EOL) of alternative 3?

Question 9 options:

7

None of the answers provided is correct

27

31

Question 10 (1 point)

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What is the optimal alternative based on the Expected Opportunity Loss (EOL) criterion?

Question 10 options:

	None of the answers provided is correct
	Alternative 3
	Alternative 1
	Alternative 2