Week2

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[pic] Department of Management Class of BUS 564 Advanced Decision Making Final Exam 1- A local real estate investor in Orlando is considering three alternative investments: a motel, a restaurant, or a theater. Profits from the motel or restaurant will be affected by the availability of gasoline and the number of tourists; profits from the theater will be relatively stable under any conditions. The following payoff table shows the profit or loss that could result from each investment: | |Gasoline Availability | |Investment |Shortage |Stable Supply |Surplus | |Motel |$ 6,000 |$10,000 |$20,000 | |Restaurant |2,000 |15,000 |6,000 | |Theater…show more content…
c. Construct the opportunity loss table and determine the best decision. d. Compute the expected value of perfect information. 4- Carol Latta is visiting hotels in Los Angeles to decide where to hold a convention for a national organization of college business school teachers she represents. There are three hotels from which to choosethe Cheraton, the Milton, and the Harriott. The criteria she is to use to make her selection are ambiance, location (based on safety and walking distance to attractions and restaurants), and cost to the organization. Following are the pairwise comparisons she has developed that indicate her preference for each hotel for each criterion and her pairwise comparisons for the criteria: |Ambiance | |Hotel |Cheraton |Milton |Harriott | |Cheraton |1 |1/2 |1/5 | |Milton |2 |1 |1/3 | |Harriott |5 |3 |1 | |Location | |Hotel |Cheraton |Milton |Harriott | |Cheraton |1 |5 |3 | |Milton |1/5 |1 |1/4 | |Harriott |1/3

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