Please answer Problem 3 parts A and B. (question 2 is posted as refrence)

2. [20 points] Kenneth Brown is the principal owner of Brown Oil, Inc. At the present time, Ken is forced to consider purchasing some more equipment for Brown Oil because of competition. His alternatives are shown in the following table: EQUIPMENT FAVORABLE MARKET ($) UNFAVORABLE MARKET ($) Sub 100 300,000 -200,000 Oiler 250,000 -100,000 Texan 75,000 -18,000 For example, if Ken purchases a Sub 100 and if there is a favorable market, he will realize a profit of $300,000. On the other hand, if the market is unfavorable, Ken will suffer a loss of $200,000. But Ken has always been a very optimistic decision maker. a. What type of decision is Ken facing? b. What decision criterion should he use? C. What alternative is best? Why? d. If a pessimistic approach is used, what criterion should be used? e. What alternate should be selected with pessimistic approach? Why? 3. (15 points) Refer Problem 2. The COVID-19 pandemic caused the demand for oil products would be extremely low due to travel restrictions and social distancing. Apparently, the American consumer will to use oil less products even if the price of these products are low. According to the predictions, the chance of a favorable market for oil products was 30%, while the chance of an unfavorable market was only 70%. Ken would like to use these probabilities in determining the best decision a. What decision model should be used? b. What is the optimal decision