Quantitative Methods/ Decision Theory

The following payoff table shows the profit for a decision problem with three states of nature and two decision alternatives: State of Nature DA s1 s2 s3 d1 -20 40 100 d2 10 45 70 I need to state of nature probabilities are: P(s1) = 0.35, P(s2) = 0.35 and P(s3) = 0.30. a. Use a decision tree to recommend a decision. b. Use the expected value to recommend a decision.

Quantitative Methods/Probabilities

A survey of MBA students obtained the following data on "student's first reason for application to the school in which they matriculated". Reason for Application Quality Cost Other Totals Full time 421 393 76 890 Part time 821 986 122 1929 Letting A be the event that a student is full time and let B the event that the student lists school cost as the first reason for applying. a. Calculate P(B) b. Calculate P(B|A) c. Are A and B independents and I need to justify the answer

Quantitative Methods/Forecasting

Month 1993 January 1.45 February 1.80 March 2.03 April 1.99 May 2.32 June 2.20 July 2.13 August 2.43 September 1.90 October 2.13 November 2.56 December 4.16 Using the chart above I need to: a. Forecast the month of December using a moving average of 3. b. Calculate the Mean Square Error (MSE).

Quantitative Methods/ Decision Theory

The following payoff table shows the profit for a decision problem with three states of nature and two Decision Alternatives (DA): State of Nature DA s1 s2 s3 d1 -20 40 100 d2 10 45 70 I need to determine what is the recommended decision using a. The optimistic approach? b. The conservative approach?

Quantitative Methods/ Decision Theory

The following payoff table shows the profit for a decision problem with three states of nature and two decision alternatives (DA): State of Nature DA s1 s2 s3 d1 -20 40 100 d2 10 45 70 I need to determine what is the recommended decision using the minmax regret approach?