Nicole Nelson has come into an inheritance from hergrandparents. She is attempting to decide among several investment alternatives. The return after one year is depen-dent primarily on the interest rate during the next year. The rate is currently 7%, and she anticipates it will stay thesame or go up or down by at most 2 points. The variousinvestment alternatives plus their returns ($10,000s) giventhe interest rate changes are shown in the following table.Determine the best investment using the following decisioncriteria.a. Maximaxb. Maximinc. Equal likelihoodd. Assume that Nicole, with the help of a financialnewsletter and some library research, has been able toassign probabilities to each of the possible interest ratesduring the next year as follows: Interest Rate 5% 6% 7% 8% 9%Probability 0.1 0.2 0.4 0.2 0.1

A well-known plastic mould and die manufacturer in Toronto intends to expand internationally in anticipation of strong demand and expansion in the plastic die manufacturing sector. use the table beneath. Using the Maximax, Maximin, and equally likely conditions, assist the business in making the best option in an unclear situation. 0.5 for a highly favourable condition, 0.2 for an average demand, and 0.3 for an unfavourable state are the probabilities linked with the states of nature.a) Choose the course of action that will give Andrew the highest predicted monetary value (EMV).b) Determine the anticipated value of perfect information (EVPI).

Build-Rite Construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be​ unpredictable, so​ Build-Rite cannot estimate the probability of continued benefits from its relationship with the show. Demand for home improvements next year may be either low or high. But​ Build-Rite must decide now whether to hire more​ employees, do​ nothing, or develop subcontracts with other home improvement contractors.​ Build-Rite has developed the following payoff​ table:

Cheryl Druehl Retailers, Inc., must decide whether to build a small or a large facility at a new location in Fairfax. Demand at the location will either be low or high, with probabilities 0.6 and 0.4, respectively. If Cheryl builds a small facility and demand proves to be high, she then has the option of expanding the facility. If a small facility is built and demand proves to be high, and then the retailer expands the facility, the payoff is $290,000. If a small facility is built and demand proves to be high, but Cheryl then decides not to expand the facility, the payoff is $253,000. If a small facility is built and demand proves to be low, then there is no option to expand and the payoff is $220,000. If a large facility is built and demand proves to be low, Cheryl then has the option of stimulating demand through local advertising. If she does not exercise this option, then the payoff is $35,000. If she does exercise the advertising option, then the response to advertising will…

The operations manager for a water taxi company wants to decide whether to purchase a small, medium, or large new boat for the company. The manager estimates that the annual profits (in thousands of dollars) will vary depending upon whether passenger demand is low, moderate, or high, as shown in the following table. Demand Boat Low Medium High Small 50 57 70 Medium 37 79 89 Large 17 51 119 Probability 0.3 0.3 0.4 If the company uses the expected value approach, which size boat will it decide to purchase? O small 000 medium large O none