.. . Learning Activity 6.pdf A Q Search 1 page Learning Activity 6 1) Describe various criterions used for decision making under uncertainty. 2) Jeff sells the New York Times Sunday newspaper at a city corner near several churches. He sells each newspaper for $6.50 after purchasing them for $4.00. Any unsold newspaper can be returned to the New York Times for a $0.75 credit. Jeff expects demand on Sunday to be 75, 100, 125, or 150 newspapers and would like to order one of these four quantities from the New York Times. If Jeff orders 100 papers from the New York Times and the Sunday demand is for 150 papers, what will the profit be? 3) A college business school needs to replace its copier. There are 3 different models available, and the payoff will depend on the number of copies made with these models as shown in the following decision table along with the probabilities. A negative payoff represents a cost. a) Which copier should the college purchase using decision making under risk? b) What is the most that the college should pay for additional information regarding copier use? Copier's Usage Copier Low Moderate High 100 Series - $40,000 - $50,000 -$65,000 200 Series - $50,000 $40,000 - $55,00 300 Series - $75,000 - $60,000 - $60,000 Probability 0.26 0.29 0.45 4) Answer the question below and explain your calculations: The accompanying decision tree is partially completed for a company that is deciding to build a large or small facility for a new product that will face demand that is strong or weak, The company has an option to perform a market survey that will cost $4,000 that will predict a strong or weak market. The payoffs for each combination of facility size and demand are also shown. Given the survey will predict a strong market, what is the expected monetary value of building a small facility? Strong Q7 518,900 Survey 02 510,090 Strong 0.4 518,000