The Entrepreneurship Development Unit (EDU) at Central University of Technology (CUT) is in the business of...

 

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The Entrepreneurship Development Unit (EDU) at Central University of Technology (CUT) is in the business of producing job-market competitive graduates and quality research articles published in top international journals. You have been appointed in the committee that looks at EDU's sustenance and growth. Three alternatives in this decision-making process are on the table. These are: increase the venues that accommodate more undergraduates [alternative 1]; increase number of research professors and push the publications up [alternative 2], and keep the status quo [alternative 3]. There are two possible outcomes (states of nature) that EDU faces which are positive provincial economic growth or negative provincial economic growth. These alternatives and these possible outcomes give different conditional payoffs/profits (in millions of South African Rands). The decision table below summarises the conditional payoffs for EDU. ALTERNATIVE Increase the venues Increase number of research professors Keep status quo Opportunity Loss Table for EDU ALTERNATIVE Increase the venues Increase number of research professors Keep status quo Positive provincial economic growth R2 R1 RO OUTCOME 3.1 Assume that EDU wishes to apply the minimax regret criterion when identifying the best alternative, first prepare EDU's Opportunity Loss Table by populating the table below and then indicate the best alternative according to the minimax regret criterion. (8) A C E Negative provincial economic growth Positive provincial economic growth OUTCOME -R1.8 -R0.2 RO Negative provincial economic growth B D F = 0 3.2 Suppose EDU believes that the probability of realising a positive provincial economic growth is 80%, which alternative will EDU adopt using the expected monetary value (EMV) approach in decision- making? Show calculations. (4) The Entrepreneurship Development Unit (EDU) at Central University of Technology (CUT) is in the business of producing job-market competitive graduates and quality research articles published in top international journals. You have been appointed in the committee that looks at EDU's sustenance and growth. Three alternatives in this decision-making process are on the table. These are: increase the venues that accommodate more undergraduates [alternative 1]; increase number of research professors and push the publications up [alternative 2], and keep the status quo [alternative 3]. There are two possible outcomes (states of nature) that EDU faces which are positive provincial economic growth or negative provincial economic growth. These alternatives and these possible outcomes give different conditional payoffs/profits (in millions of South African Rands). The decision table below summarises the conditional payoffs for EDU. ALTERNATIVE Increase the venues Increase number of research professors Keep status quo Opportunity Loss Table for EDU ALTERNATIVE Increase the venues Increase number of research professors Keep status quo Positive provincial economic growth R2 R1 RO OUTCOME 3.1 Assume that EDU wishes to apply the minimax regret criterion when identifying the best alternative, first prepare EDU's Opportunity Loss Table by populating the table below and then indicate the best alternative according to the minimax regret criterion. (8) A C E Negative provincial economic growth Positive provincial economic growth OUTCOME -R1.8 -R0.2 RO Negative provincial economic growth B D F = 0 3.2 Suppose EDU believes that the probability of realising a positive provincial economic growth is 80%, which alternative will EDU adopt using the expected monetary value (EMV) approach in decision- making? Show calculations. (4)

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To address the questions in the provided image we need to complete two separate tasks 31 Opportunity Loss Table for EDU using the minimax regret crite... View the full answer