USE THIS CHART to practice the 5 Criterion for Making Decisions under Uncertainty (SHOW YOUR WORK) and show your selections (highlight your best alternative) for each of the 5 techniques ie Maximax, Maximin, Hurwicz Realism (use alpha = .7), LaPlace, and Minimax Regret. You are practicing on ALL of the methods for decision making under uncertainty. *see previous note to use alpha = .7 for Hurwicz. THEN, using the probabilities provided in the chart, calculate the EMV and EOL for each alternative and select the best alternative. FINALLY, calculate what is the maximum amount that should be paid for a perfect forecast EVPI???

Mickey Lawson is considering investing some money that he inherited. The following payoff table gives the profits that would be realized during the next year for each of three investment alternatives Mickey is considering:

DECISION ALTERNATIVE	good economy	poor economy
Stock market	80,000	-20,000
Bonds	30,000	20,000
CDs	23,000	23,000
Probability	0.5	.05