HO15-PS4 - MS&E 352 Handout #15 Decision Analysis II...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
MS&E 352 Handout #15 Decision Analysis II February 19 th , 2009 ______________________________________________________________________ ______________________________________________________________________ 02/24/06 Page 1 of 1 Problem Set #4 Problem Set #4 Due Thursday, 11 AM, March 5 th You are hired as a consultant by Mr. Burbank, a successful MS&E alum. Mr. Burbank is considering investing in one of the following four deals: ALTERNATIVE 1: ALTERNATIVE 2: ALTERNATIVE 3: ALTERNATIVE 4: Also, Mr. Burbank has mentioned that he will only have enough resources to invest in one of these deals. Question 1: [10 points] Assuming that Mr. Burbank is risk-neutral, which of these alternatives should he pick? Call this alternative OA (for Optimal Alternative). 1 6 0.1 12 0.3 8.5 0.6 4 0.1 17 0.5 9 0.3 1 0.1 -6 0.1 11.5 0.2 8 0.3 4 0.3 3 0.1 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
MS&E 352 Handout #15 Decision Analysis II February 19 th , 2009 ______________________________________________________________________ ______________________________________________________________________ 02/24/06
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/16/2010 for the course MS&E 352 taught by Professor Ronhoward during the Winter '09 term at Stanford.

Page1 / 2

HO15-PS4 - MS&E 352 Handout #15 Decision Analysis II...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online