*Draw a decision tree for each problem( 2 c)

1. Discuss the differences between decision making under certainty, decision making under risk, and decision making under uncertainty.

2. In the environment of increased competition, a fitness club executive is considering the purchase of additional equipment. His alternatives, outcomes, and payoffs (profits) are shown in the following table:

Equipment	Favorable Market	Unfavorable Market
Acme	$400,000	-$175,000
Standard	$280,000	-$90,000
High Pro	$95,000	-$15,000

a. If the executive is an optimistic decision maker, which alternative will he likely choose?

b. If the executive is a pessimistic decision maker, which alternative will he likely choose?

c. Market research suggests the chance of a favorable market for fitness clubs is 76%. If the executive uses this analysis, which alternative will he likely choose?