1. COURSE DOCUMENTS DDMUU: LINK 1: Practice 1 Decision Making Under Uncertainty (DMUU) PRACTICE 1: The company Mutual Benefits has $ 500,000 available for one of three investments alternatives in the stock market: i, a blue-chip stock offering: (D) il. a growth-stock offering: (E) iii. a new venture-stock offering. (F) th QR he Disco in instar The investment environment consists of four mutually exclusive states of nature, but Mutual has no information about which one of these four states of nature the market will actually prevail in the courses of the investment period, Mutual is able to calculate the relevant payoffs, however, and develop the following decision matrix: TABLE NUMBERSIH Thousands: 0 Alternatives / Events Boom : Moderate Grow e Moderate Decline ef Collapse D: 525 $75 SO S30 $ 35 SIS $50 S-40 550 S 10 $15 S50 40 20 125 15 F DMULLER w 1. COURSE DOCUMENTS 1. Using the 5 criteria applicable for DMUU, evaluate the given alternatives and advise Mutual which alternative is preferable. For Criterion of Realism use a -6 Ignore I for DMUU. BE SURE TO: CLEARLY SHOW ALL WORK AND STATE EACH SOLUTION; WRITE A RECAP (TABLE THAT SUMMARIZES ALL RESULTS); AND HAVE A FINAL OVERALL CONCLUSION WITH SUPPORTING REASON FOR YOUR CHOICE! AFTER SHOWING ALL WORK, SUMMARIZE/RECAP using the table below: "Be sure to use proper labels... Any other labels beside the above will be considered incorrect! Note: You should see videos for MAXIMAX, MAXIMIN, REALISM, EQUAL LIKELIHOOD and REGRET! Use the QUICK REFERENCE Sheet! Expected Answer Format: DMUU Lettere Value Reason Perfect Optimism MXMX Perfect PessimSIMXMN Ontimismit REALISM EUR Likelihood QLIKHD Minn UERESRET Overall DMUN (Give Resort * This exercise is posted on BOTH the LINK (first) and Discussion Board (second) Submit ALL YOUR WORK AND Summarize in the Expected Answer Format below. DMUU: Letter & Value Reason Perfect Optimism: Perfect Pessimism Optimism ata Equal Likelihood: Minimizing Regret Overall DMUU (Give Reasons) DMUR: Results not needed until week 3 Xbar Sigma COV Normal Disti M Overall DMUU: (Give Reasons!) DMURResults - not needed until week 3 Xbar Sigma COV Normal Dist. % A B Be Sure To Support Your Answers (Give Reasons!)