- C In The Late 1990s Many Firms Began Downsizing In Order To Reduce Their Costs One Of The Results Of These Cost Cutti 1 (65.56 KiB) Viewed 62 times
(c) In the late 1990s many firms began downsizing in order to reduce their costs. One of the results of these cost-cutting measures has been a decline in the percentage of private industry jobs that are managerial. The following data shows the percentage of females who are managers from 1990 to 1995. Year 1990 1991 1992 1993 1994 1995 Percentage 7.45 7.53 7.52 7.65 7.62 7.73 i. Develop a linear trend equation for this time series ii. Use the trend equation to estimate the percentage of females who are managers (a) 1996 (b) 1997 for QUESTION THREE An investor is considering three alternatives-a certificate of deposit, a low-risk stock fund, and a high-risk stock fund-for a K20,000 investment. She considers three possible states of nature: S: Strong stock market S: Moderate stock market S: Weak stock market State of Nature S 1,200 S 1,200 1,200 -600 800 The payoff table (in Kwachas) is as follows: Action (Possible Investment Alternative) S Certificate of deposit 1,200 Low-risk stock fund 4,300 High-risk stock fund 6,600 Which action is selected by the i. Maximax criterion? ii. Maximin criterion? iii. Equally likely criterion? iv. Criterion of realism? Use a =0.8. Minimax criterion? -1,500 V. Page 3