You are trying to decide to invest in one of two different...

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Strome College of Business Department of Information Technology and Decision Sciences BNAL 206 Probability, Decision Analysis and Business Statistics Summer 2019 Answer Key - Midterm #2 1. You are trying to decide to invest in one of two different stocks. The indicators for each stock are provided below: Stock X Stock Y CV 103.307 120.019 RTRR 0.967 0.833 a. Provide an interpretation of the CV
b. Provide the interpretation of the RTRR c. Provide the investment recommendation
2. The CEO must determine whether to build a small plant or a large plant for the company. The CEO believes that the profit made will depend on the level of future demand. The payoff table (in $) is as follows: Action Event Probability Small plant Large plant High demand 0.65 270 Low demand 0.35 195 a. Compute the EMV for each action. 480 100
b.

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