Decision Analysis (You must complete this assignment in Excel and submit th

Decision Analysis

(You must complete this assignment in Excel and submit that Excel file)

The director of career advising at Orange Community College wants to use decision analysis to provide information to help students decide which 2-year degree
program they should pursue. The director has set up the following payoff table for six of the most popular and successful degree programs at OCC that shows the
estimated 5-year gross income ($) from each degree for four future economic conditions:

Degree Program

Economic Conditions

Recession

Average

Good

Robust

Graphic Design

145000

175000

220000

260000

Nursing

150000

180000

205000

215000

Real Estate

115000

165000

220000

320000

Medical Tech

130000

180000

210000

280000

Culinary Tech

115000

145000

235000

305000

Computer IT

125000

150000

190000

250000

Probability

0.2

0.4

0.3

0.1

Determine the best degree program in terms of projected income using the following decision criteria:

a. Maximax

b. Maximin

c. Equal likelihood

d. Hurwicz (alpha = .6)

e. Minimax regret

f. EOL (expected opportunity loss)

g. The director of career advising at Orange Community College has paid a small fee to a local investment firm to indicate a probability for each future
economic condition over the next 5 years which is shown in the last row of the above table. Using expected value determine the best degree program in terms of
projected income.

h. Determine the EVPI of this problem.