## For this question, consider the following decision problem. A decision maker must choose one of three actions: A, B, or C.

10. Question 10 For this question, consider the following decision problem. A decision maker must choose one of three actions: A, B, or C. The outcome of each action is…

## Given Supplier S charges IDEA a fixed upfront cost of 175,000€, what is IDEA’s maxi-max decision?

5. Question 5 Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example – including the…

## Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example – including the 0.5 probability that the market is strong – remain the same as in Session 1, except for the fixed upfront cost charged by Supplier S. Suppose that, instead of a fixed upfront cost of 0€, Supplier S charges IDEA a fixed upfront cost of 175,000€.

4. Question 4 Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example – including the…

## Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example remain the same except for the probability of the market remaining weak or strong. Suppose that, instead of a 0.5 chance that the market is strong, the probability that the market is strong is now 0.6.

3. Question 3 Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example remain the same…

## Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example remain the same except for the probability of the market remaining weak or strong. Suppose that, instead of a 0.5 chance that the market is strong, the probability that the market is strong is now 0.6.

2. Question 2 Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example remain the same…

## Which choice is the decision maker’s maxi-min decision?

7. Question 7 For this question, consider the following decision problem. A decision maker must choose one of three actions: A, B, or C. The outcome of each action is…

## Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example remain the same except for the probability of the market remaining weak or strong.

1. Question 1 Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example remain the same…

## Which choice is the decision maker’s expected-value-maximizing decision?

9. Question 9 For this question, consider the following decision problem. A decision maker must choose one of three actions: A, B, or C. The outcome of each action is…

## For this question, consider the following decision problem. A decision maker must choose one of three actions: A, B, or C. The outcome of each action is uncertain, as follows.

8. Question 8 For this question, consider the following decision problem. A decision maker must choose one of three actions: A, B, or C. The outcome of each action is…

## Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example

6. Question 6 Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example – including the…