table (see below), and support your final statement with areason.Be sure to show all work, indicate the recommended alternativeeach time, provide a summary table (see below),and support your final statement with a reason.Expected Table Format: See bellowDMUU:Letter/ValueReasonPerfect Optimism:Perfect PessimismOptimismat a=Equal Likelihood:Minimizing Regret:Overall Choice/ Reason: ALTERNATIVESFiVLreason.Portfolio UPortfolio VPortfolioWRecession$25$ 47$50.3Inflation$75$ 70$ 80TES OF NATUREDepressionSTA$0$-5$-15.21. DMUU: What would be the decision accordingto: (1) Maximax (optimism); (2) Maximin (pessímísm); (3) Realism where Alpha - α = .7 (4) Equal Likelihood;and (5) Minimizing Regret? Be sure to show work, indicatethe recommended alternative each time, provide a summary.table_(see below), and support your final statement with aBe sure to show all work, indicate the recommended alternativeeach time, provide a summary table (see below),and support your final statement with a reason.

NOTE: “Since you have posted a question with multiple sub-parts, we will solve the first three…

ALTERNA TIVES Fi VL Portfolio U Portfolio V Portfolio W Recessi on $25 $ 47 $50 .3 n Inflatio Depressi $75 $ 70 $80 TES OF N 5 ATURE on $0 $-5 $ 15 - .2 1. DMUU: What would be the decision according to: (1) Maximax (optímísm); (2) Maximin (pessimism); (3) R ealism where Alpha - α = .7 (4) Equal Likelihood; and (5) Minimizing Regret? Be sure to show work, indicate the recommended alternative each time, provide a summary table (see below), and support your final statement with a

ALTERNA TIVES Fi VL Portfolio U Portfolio V Portfolio W Recessi on $25 $ 47 $50 .3 n Inflatio Depressi $75 $ 70 $80 TES OF N 5 ATURE on $0 $-5 $ 15 - .2 1. DMUU: What would be the decision according to: (1) Maximax (optímísm); (2) Maximin (pessimism); (3) R ealism where Alpha - α = .7 (4) Equal Likelihood; and (5) Minimizing Regret? Be sure to show work, indicate the recommended alternative each time, provide a summary table (see below), and support your final statement with a

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter1: The Art And Science Of Economic Analysis

Section: Chapter Questions

Problem 2.5P

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EXERCISE 1Below is a production possibilities table for consumer goods (Food) and capital goods(Robots):A B C D EFood 0 1 2 3 4Robots 10 9 7 4 01. Show these data graphically. Upon what specific assumptions is this productionpossibilities curve based?2. If the economy is at point C, what is the cost of one more food? Of one morerobot? Explain how the production possibilities curve reflects the law ofincreasing opportunity costs.3. If the economy characterized by this production possibilities table and curvewere producing 3 food and 2 robots, what could you conclude about its use ofavailable resources?4. What would production at a point outside the production possibilities curveindicate? What must occur before the economy can attain such a level ofproduction?EXERCISE 2Explain how (if at all) each of the following affects the location of a country’s productionpossibilities curve:1. The quality of education increases.2. The number of unemployed workers increases.3. A new technique…
Suppose Jessica has two choices: receive $12000 and 30 utils or take a gamble that has a 55% chance of a $20000 and 45 utils, and a 45% chance of a $0 payoff and zero utility. Assuming Jessica is a utility maximizer, what will she likely choose? a) Jessica will not take the gamble b) Jessica will take the gamble c) It cannot be determined d) Jessica is indifferent
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