OBJECTIVE: This assignment addresses course learning outcome (CL04) - Able to identify company's operational problems and propose steps to address implementation issues using decision model, and program learning outcome (PL06 - Communication skill) INSTRUCTION: Give appropriate answers for these two questions. Q1. Decision Analysis [Total 40 Marks] Suppose that a decision maker faced with four decision alternatives and four states of nature develops the following profit payoff table. Decision Alternative di d2 d3 d4 s1 14 11 9 8 State of Nature s2 s3 9 10 10 8 10 10 10 11 s4 5 7 11 13 a) Define (i) decision alternative, and (ii) state of nature. (10 Marks) b) If the decision maker knows nothing about the probabilities of the four states of nature, what is the recommended decision using the optimistic, conservative and minimax regret approaches? (15 Marks) c) Which approach do you prefer? Explain. (5 Marks) d) Is establishing the most appropriate approach before analyzing the problem important for decision maker? Explain. (5 Marks) e) Assume that the payoff table provides cost rather than profit payoffs. What is the recommended decision using the optimistic, conservative, and minimax regret approaches? (5 Marks) Q2. Queueing [Total 10 Marks] Identify one application of waiting line model (queuing model) in your workplace, in which customers arrive for service such as at grocery checkout counter, bank, or restaurant. The waiting line models also can be applied to many different situations, such as telephone calls waiting for connections, mail orders waiting for processing, machines waiting for repairs, manufacturing jobs waiting to be processed, and money waiting to be spent or invested. Describe the application in which a waiting line model helped decrease the waiting times. (10 Marks)