Question: Construct a payoff table. (Enter your answers in $). Dealer Annual Miles Driven 12,000 15,000 18,000 Dealer A $10,584 $11,934 $13,284 Dealer B $ 10980
Construct a payoff table. (Enter your answers in $). Dealer Annual Miles Driven 12,000 15,000 18,000 Dealer A $10,584 $11,934 $13,284 Dealer B $ 10980 Correct: Your answer is correct. $ 10980 Correct: Your answer is correct. $ 12780 Correct: Your answer is correct. Dealer C $ 11520 Correct: Your answer is correct. $ 11520 Correct: Your answer is correct. $ 11520 Correct: Your answer is correct. (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 Dealer A Correct: Your answer is correct. . The recommended decision using the conservative approach is Dealer C Correct: Your answer is correct. . The recommended decision using the minimax regret approach is Dealer C Correct: Your answer is correct. . (d) Suppose that the probabilities that Amy drives 12,000, 15,000, and 18,000 miles per year are 0.5, 0.4, and 0.1, respectively. What option should Amy choose using the expected value approach? EV(Dealer A) = $
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