You are a business owner faced with an important decision that could potentially be very lucrative. Keep in mind the "Six Steps in Decision Making" as you set up your decision analysis.

1. What is a scenario in which your business needs to make a decision?
2. Identify at least three alternatives and three states of nature for the decision.
3. Decision table in Excel that includes:

the alternatives

the states of nature

the potential payoff/losses for each alternative

Note: These fictitious amounts should be based on any information you feel is pertinent in your business decision making.

1. Include the payoff table in the essay.
2. Choose one of the three decision strategies:

Optimistic

Pessimistic

Criterion of Realism

1. For the decision strategy chosen above:

List the best payoff.

List the alternative to use based upon the payoff.

State why the decision strategy was chosen.

1. Indicate your final decision.