what is the decision, and what is the chance event ?
Construct a payoff table for Amy's problem ?
If Amy has no idea which of the three mileage assumptions is most appropriate, what is the recommended decision (leasing option) using the optimistic, conservative, and minimax regret approaches ?
Suppose that the probabilities that Amy drive 12000 15000 and 18000 miles per year are 0.5 0.4 and 0.1 respectively.
what option should Amy chose using the expected value approach?
Develop a risk profile for the decision selected in part(d).
What is the most likely cost, and what is its probability?