1. Find the best alternative given the cost outcomes below.

The probability of rain is

0.3, clouds is 0.2, and sun is 0.5.

2. In Number 1, base your decision instead on the worst possible outcome for each
alternative. Now consider a decision based on the best possible outcome. When
might both of these give you the same decision?

3. Laptops‐R‐Me keeps detailed data on their laptop sales. In the last 300 days the
number of laptops sold was as shown in the table below.

a. Find the frequency distribution of sales (in percentage).

b. Find the average number of laptops sold daily.
c. Find the yearly profit assuming the store is only open on weekdays 50 weeks a
year and the average profit per laptop is $65.

4. You are offered the chance to play a dice game at $10 per toss of 2 dice. If the sum
of the two dice tossed is 4, you will receive $100. Should you play or not? Why?