Question

The director of career advising at Orange Community College wants to use decision analysis to provide information to help students decide which 2-year degree program they should pursue. The director has set up the following payoff table for six of the most popular and successful degree programs at OCC that shows the estimated 5-Year gross income ($) from each degree for four future economic conditions:

Economic Conditions

Degree Program

Recession Average Good Robust

Graphic design 150,000 175,000 220,000 200,000

Nursing 160,000 180,000 205,000 215,000

Real estate 125,000 165,000 220,000 210,000

Medical technology 135,000 180,000 210,000 270,000

Culinary technology 110,000 145,000 235,000 205,000

Computer information technology 130,000 150,000 190,000 245,000

Determine the best degree program in terms of projected income, using the following decision criteria:

a. Maximax

b. Maximin

c. Equal likelihood

d. Hurwicz (α=0.4)

to be done in excel

Answer 1