Instructions: Questions are all mandatory. In this test a, b, c, d, e, f, g, h and i are different integers that will be chosen by the candidate. Make sure that the values chosen are actually different and belong to the specified interval. Obvious similarities between papers and numbers chosen will be penalized, heavily. Exercise 1 (Over 35 points) Carl Boto and Becky Akoto have known each other since high school. Two years ago they entered the same university and today they are taking undergraduate courses in the business school. Both hope to graduate with degrees in finance. In an attempt to make extra money and to use some of the knowledge gained from their business courses, Carl and Becky have decided to look into the possibility of starting a small company that would provide word processing services to students who needed term papers or other reports prepared in a professional manner. Carl and Becky have identified three strategies. Strategy 1 is to invest in a fairly expensive microcomputer system with a high-quality laser printer. In a favorable market, they should be able to obtain a net profit of $10,000+h over the next two years. If the market is unfavorable, they can lose $4,000+j. Strategy 2 is to purchase a less expensive system. With a favorable market, they could get a return during the next two years of $8,000+h. With an unfavorable market, they would incur a loss of $2,000+j. Their final strategy, strategy 3, is to do nothing. Carl is basically a risk taker, whereas Becky tries to avoid risk. 1 Note: Choose h and j in the interval [1,000; 20,000) and they should be two different real numbers. a. Before answering the specific questions, provide a decision table showing the alternatives, states of nature, and related outcomes. b. What type of decision procedure (criterion) should Carl use? What would Carl's decision be? c. What type of decision maker is Becky? What decision would Becky make? Provide at least two different criteria for the calculation. d. If Carl and Becky were indifferent to risk, what type of decision approach should they use? What would you recommend in this case