Problem 1 Decision Analysis The director of career advising at Orange Community College wants to use decision analysis t

[answerhappygod]

Problem 1 Decision Analysis The Director Of Career Advising At Orange Community College Wants To Use Decision Analysis T 1 (86.39 KiB) Viewed 16 times

Problem 1 Decision Analysis The director of career advising at Orange Community College wants to use decision analysis to provide information to help students decide which 2-year degree program they should pursue. The director has set up the following payoff table for six of the most popular and successful degree programs at OCC that shows the estimated 5-year gross income ($) from each degree for four future economic conditions: + Degree Program Graphic Design Nursing Real Estate Medical Tech Culinary Tech Computer IT Probability Recession 145,000 150,000 115,000 130,000 115,000 125,000 0.2 Economic Conditions Average 175,000 180,000 165,000 180,000 145,000 150,000 0.4 Good 220,000 205,000 220,000 210,000 235,000 190,000 0.3 Robust 260,000 215,000 320,000 280,000 305,000 250,000 0.1 Determine the best degree program in terms of projected income, using the following decision criteria: a. Maximax b. Maximin c. Equal likelihood d. Hurwicz (alpha = .6) e. Minimax regret f. EOL (expected opportunity loss) g. The director of career advising at Orange Community College has paid a small fee to a local investment firm to indicate a probability for each future economic condition over the next 5 years, which is shown in the last row of the above table. Using expected value determine the best degree program in terms of projected income. h. Determine the EVPI of this problem.