case $1($continued$)$

use conservative approach

Question $2$ options:

select d$1$

select d$2$

select d$3$

non of these alternatives is correct

Question $3(5$ points$)$

Listen

case $1($continued$)$

use minimax regret approach

Question $3$ options:

select d$2$

select d$3$

select d$1$

none of these alternatives is correct

Question $4(5$ points$)$

Listen

case $1($continued$)$

Suppose that the probabilities that a new union labor contract passes $($s$1)$ is $0\mathrm{.}7$ and the probabilities that a new union labor contract fails $($s$2)$ is $0\mathrm{.}3.$ What option should a company choose using the expected value approach?

Question $4$ options:

select d$2$

select d$1$

select d$3$

non of these alternatives is correct

Question $5(5$ points$)$

Listen

case $1($continued$)$

Compute EV$($d$1)$

Question $5$ options:

$7\mathrm{.}05$

$4\mathrm{.}90$

$5\mathrm{.}45$

Non of these alternatives is correct

Question $6(5$ points$)$

Listen

Case$1($continued$)$

Compute EV$($d$2)$

Question $6$ options:

$7\mathrm{.}05$

$5\mathrm{.}45$

$4\mathrm{.}90$

non of these alternatives is correct

Question $7(5$ points$)$

Listen

case $1($continued$)$

Which equation we should use to compute

Expected Value of Perfect Information $($EVPI$)$

Question $7$ options:

EVPI $($EV of PI$)=$ abs$($EV with PI $$ EV of our optimal decision$)=$abs$($EVwPI$-$EVwoPI$)$

EVPI$=$EVwPI$-$EVwoPI

EVPI$=$EVwSI$-$EVwoSI

non of these alternatives is correct

Question $8(5$ points$)$

Listen

case $1($continued$)$

Let's compute EV with PI $($EVwPI$)$

Question $8$ options:

$3\mathrm{.}7$

$2\mathrm{.}2$

$1\mathrm{.}4$

non of these alternatives is correct

Question $9(5$ points$)$

Listen

case $1($continued$)$

Compute EVPI

Question $9$ options:

$-4\mathrm{.}9$

$-2\mathrm{.}1$

$1\mathrm{.}2$

non of these alternative is correct