MGT 303-2 - Quantitative Analysis Quiz navigation Question 2 1 3 Not yet answered Ms Ann is chief executive of a small company in a tobacco industry. As there is a meeting for definition of the plan for the next year business activities, she is considering to expand the business operations by purchasing new equipment. Her alternatives are shown in the following table Alternatives state of nature Marked out of 3.00 Finish attempt ... Favourable market Unfavourable market Time left 0:59:17 P Flag question 90 000 dollars -50 000 dollars 80 000 dollars -20 000 dollars Equipment I for tobacco processing Equipment Il for tobacco processing Equipment Ill for tobacco processing 60 000 dollars - 10 000 dollars For example, if Ms Ann purchases Equipment I for tobacco processing and if there is a favourable market, she will realize a profit of $90,000. On the other hand, if the market is unfavourable, Ms Ann will suffer a loss of $50,000. (a) If Ms Ann is optimistic oriented, what criteria would she use? In that case, what is the solution of the problem? (b) Her financial advisor is pessimistic oriented. In that case, which criteria could be used and what is the solution of the problem? (c) Explain a situation when a decision tree is preferable to a decision table for a decision making process. Paragraph BIE MacBook Pro 5 6 8 A 9