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MS@e 252 HO31 Final Examination: Part I Decision Analysis 1 December 3rd, 2002 Final Examination 2001-2002 Part Il: Quantitative Problems SAI PLE FINAL Solutions MS&B 252 FINAL EXAM Part Il: ANSWER SHEET, Last (pring FIRST Name (print): sump: osed anything you wish Page 17 of 38 MS@E 252 HO31 Final Examination: Part 1 Decision Analysis 1 December 3rd, 2002 » Rain Bets; and the Party Problem: (15 points) You Iearhed in BAA that you culdeanshugt a 2a if pode atin bhai assignments bout he some uncertain. Kim blioves hee is 60% chance of rain onthe day ofthe Pa. However. Jane believes here isa 75% chance of ran fis $100 and a) Construct ar for Kim and Jane suet they both find the deals equally attractive. (Assume Risk news (10 points) 'b). What isthe maximum amount of maney you can make ine? (5 points) In rawous Let CE yyy Ewe Sing thay aw bok isk noutod Huu au both ron Vour Page 18 of 38 MS&E 252 HO31 Final Examination: Part 1 Decision Analysis 1 December 3rd, 2002 3) Buying Stocks: (45 points) ere are two socks, and th equal odds equal odds is isk neu ‘erin Equivalen Page 21 of 38