Question: Decision Table with Conditional Values for Sarahs Proposal Chance Event Alternatives Favorable Market Unfavorable Market Option 1 - Proposal A $66,885 -$15,805 Option 2 -

Decision Table with Conditional Values for Sarahs Proposal

Chance Event

Alternatives

Favorable Market

Unfavorable Market

Option 1 - Proposal A

$66,885

-$15,805

Option 2 - Proposal B

$69,760

-$17,680

Option 3 - Do nothing

$0

$0

Probability

.6

.4

Option 1: accept the clients current proposal

Option 2: Maintain the $199 rate while proposing the new additional revenue option

Option 3: Not book.

Decision Table for decision Under Uncertainty Sarahs Proposal

Chance Event

Alternatives Favorable Market Unfavorable Market Maximum in Row Minimum in Row Average Row
Option 1: Proposal A
Option 2: Proposal B
Option 3: Do nothing $0 $0 $0 $0 $0
Maximax Maximin Equally likely
Probabilities .6 .4

Calculate the EMV for A1, A2, and A3.

Explain the best alternative, which offer to accept, and why?

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