Section - II Choose the correct answer for the questions below. 4 points for each question. 1. Which of the following is not correct? (a) A good decision is based on logic (b) A good decision uses all available resources (c) A good decision evaluates all possible alternatives (a) A good decision utilizes a quantitative method (c) A good decision requires being lucky 2. If a banana can always be traded for two oranges, which one would be best? () One apple, two oranges and two bananas (b) Two apples, three oranges and one banana (e) Two apples, two oranges and two bananas (d) One apple, three oranges and one banans (e) Two apples, two oranges and one banana 3. Which one is the best for a risk averse person? (8) Earning $160 or so with equal probability (b) Earning $180 or $60 with equal probability (c) Earning $140 or $80 with equal probability (d) Earning $200 or $40 with equal probability (e) Earning $120 or $60 with equal probability 4. Suppose that the probability of weather being sunny is 0.75 and being rainy is 0.25. A mobile app estimates the weather condition correctly with 0.75 probability if it is sunny and incorrectly with 0.25 probability if it is ruiny. If this app claims that the following day will be sunny, what is the probability that it will be rainy. (a) 0.05 (b) 0.10 (e) 0.15 (d) 0.20 (e) 0.25