$($b$)$

Construct a payoff table. $($Enter your answers in $$).$

Dealer Annual Miles Driven

$12,00015,00018,000$

Dealer A $$10,044$ $$11,394$ $$12,744$

Dealer B $ $ $

Dealer C $ $ $

$($c$)$

If Amy has no idea which of the three mileage assumptions is most appropriate, what is the recommended decision $($leasing option$)$ using the optimistic, conservative, and minimax regret approaches?

The recommended decision using the optimistic approach is $.$ The recommended decision using the conservative approach is $.$ The recommended decision using the minimax regret approach is $.$

$($d$)$

Suppose that the probabilities that Amy drives $12,000,15,000,$ and $18,000$ miles per year are $0\mathrm{.}5,0\mathrm{.}4,$ and $0\mathrm{.}1,$ respectively. What option should Amy choose using the expected value approach?

EV$($Dealer A$)=$ $

EV$($Dealer B$)=$ $

EV$($Dealer C$)=$ $

The best decision is $.$

$($e$)$

Develop a risk profile for the decision selected in part $($d$).$ What is the most likely cost, and what is its probability?

Based on the risk profile, the most likely cost is $ at a probability of