Discussion Question 1. Discuss the differences among decision making under certainty, decision making under risk, and decision making under uncertainty. 2. Compare and Contrast techniques are used to solve decision-making problems under uncertainty? 3. Describe how you would determine the best decision using the EMV criterion with a decision tree. Practice Exercise 1. Fatema is considering investing some money that he inherited. The following payoff table gives the profits that would be realized during the next year for each of three investment alternatives Fatema is considering: Decision Alternative Stock market State of Nature Good Economy Poor Economy 80,000 -20,000 Bonds 30,000 20,000 CDs 23,000 23,000 Probability 0.5 0.5 (a) What decision would maximize expected profits? (b) What is the maximum amount that should be paid for a perfect forecast of the economy