Posted: December 10th, 2015

1. What is the decision to be made? What is the chance event? How many decision alternatives out there? How many outcomes are there for the chance event?

1. b) If nothing is known about the probabilities of the chance outcomes, what is the recommended decision using the following approaches:

– Optimistic

– Conservative

– Minimax Regret

1. Suppose that management of Turkish Airlines believes the following probabilities exist:p(strong)=0.50 P(medium)=0.40 p(weak)=0.10 Determine the decision based on this information and by using Expected Value (EV) approach.

1. d) Suppose that management of Turkish Airlines believes the following probabilities exist: p(strong)=0.45 P(medium)=0.30 p(weak)=0.25 Determine the decision based on this information and by using Expected Value (EV) approach.