Please complete problem #3-17,problem #3-20, and problem #3-21

Problems : 3- . 3-17 Kenneth Brown is the principal owner of Brown Oil, Inc. After quitting his university teaching job, Ken has been able to increase his annual salary by a fac- tor of over 100. At the present time, Ken is forced to consider purchasing some more equipment for Brown Oil because of competition. His alternatives boot sides are shown in the following table: FAVORABLE UNFAVORABLE ed bloat MARKET MARKET EQUIPMENT ($) -omg boot Sub 100 300,000 -200,000 Oiler J 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 unfa- vorable, 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?DISCUSSION QUESTIONS AND PROBLEMS 99 2: 3-20 Mickey Lawson is considering investing some money that he inherited. The following payoff ta- ble gives the profits that would be realized during the next year for each of three investment alterna- tives Mickey is considering: STATE OF NATURE DECISION GOOD POOR ALTERNATIVE ECONOMY ECONOMY Stock market 80,000 -20,000 Bonds 30,000 20,000 CDS 23,000 23,000 Probability 0.5 ngulost 0.5 (a) What decision would maximize expected profits? (b) What is the maximum amount that should be paid for a perfect forecast of the economy? :3-21 Develop an opportunity loss table for the investment problem that Mickey Lawson faces in Problem 3-20. What decision would minimize the expected oppor- tunity loss? What is the minimum EOL? . 3-22 Allen Young has always been proud of his personal