Question: After buying a computer system, Sim Thomas must decide whether to purchase (1) a complete service contract at a cost of $1200, which would cover

After buying a computer system, Sim Thomas must decide whether to purchase (1) a complete service contract at a cost of $1200, which would cover all maintenance costs; (2) a partial service contract at a cost of $600, which would require Thomas to pay the first $1000 of the maintenance and the rest will be covered by the service agreement; or (3) no service contract. The consequences, costs and probabilities are given in the following table:

MAINTENANCE REQUIRED $	0	500	1000	1500	4000
Probabilities	0.2	0.2	0.3	0.2	0.1

Show the Pay-Off table below.

What is your decision if you use the conservative criteria?

Show the regret matrix below and then decide using the minmax regret criteria.

Show expected cost of each decision and then decide using the EMV criteria.

What is EPPI and EVPI if you use EMV criteria?

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