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Develop the payoff table of this problem If Silicon Dynamics decides to go with optimistic approach decision criterion

INSTRUCTIONS TO CANDIDATES
ANSWER ALL QUESTIONS

roblem 1 (28 points)

Hillier Supplement 1 to Chapter 9, 9s.3 (e-book page 484).

Read the problem description and answer the following questions:

a) Develop the payoff table of this problem. (8 points)

b) If Silicon Dynamics decides to go with optimistic approach decision criterion, determine which decision alternative should be chosen? Justify and show your work/calculations. (6 points)

c) If Silicon Dynamics decides to go with conservative approach decision criterion, determine which decision alternative should be chosen? Justify and show your work/calculations. (6 points)

d) If Silicon Dynamics decides to minimize the regret, determine which decision alternative should be chosen? Justify and show your work/calculations. (8 points)

Problem 2 (65 points)

Hillier Chapter 9, 9.16 (e-book page 455). Read the problem description.

When the credit-rating organization is not used, below is the corresponding payoff table 

(5/5)
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