1. What is the EMV (Expected Monetary Value/ Expected Value) for Option 2 in the following decision table?

	States of nature
Alternatives	S1	S2
p	.4	.6
Option 1	10,000	30,000
Option 2	5,000	45,000
Option 3	-4,000	60,000

a. 5,000 b. 21,000 c. 25,000

d. 29,000 e. 45,000

2. An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem.

	Economy
Investment	Decline	Expand
A	0	85
B	25	65
C	40	30
Bank	10	10

What decision should be made according to the minimax regret decision criteria?

a.	A
b.	B
c.	C
d.	Bank

3. Companies go global to

1. Take advantage of favorable costs
2. To keep abreast of trends and access new technologies
3. To build reliable sources of supply
4. All the above.