Part 1(a) The following problems are due for Module 2: Decision Analysis (Chapter #12) Problem# 8, 18, 26, 28 Please submit one Excel file containing separate worksheet (tab) for each problem. Note: Before starting the homework assignment, you are strongly recommended to solve at least one odd numbered problem in this chapter (check answer at the end of the textbook after Appendix C). Part 2(a) This is a discussion response. It should be between 300-500 words. Use in text citations and at least 2 references that are websites and based in the United States. Being a financial decision-maker at a company has implications than can affect everything and everyone. Companies pay these decision-makers good money to ensure these people are not influenced by external factors and are looking out for the company’s betterment. Cheating, scamming, and embezzling are things that not only are morally incorrect but will also line someone in jail for a long time. One of the most important lessons learned at this school is being a Responsible Stewart along with doing the right thing. Responsible stewardship is very similar to corporate social responsibility, where the company’s actions ensure the company’s efforts are moral and beneficial for society (CFI, 2022). This includes environmental, human rights, philanthropic and economic responsibilities. In this week’s lesson, we learn several ways to make decisions on which way to invest or decide on sound decisions, whether Maximax, Maximin, Maximin Regret, Hurwitz, or Equal likelihood decisions (Taylor, 2019). Each of these solutions remind me of a spaghetti diagram for a hurricane, they help predict where ideal path based upon the information provided. These five methods are similar, use science, data, and factors to identify sound financial choices. As future stewards, it will be our responsibility to make those decisions. Corporate Finance Institute. (2020, June). Corporate Social Responsibility (CSR). Corporate Finance Institute; Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/kn… Taylor, B. W. (2019). Introduction to management science. Pearson Education Limited. Part 2(B) This is a discussion response. It should be between 300-500 words. Use in text citations and at least 2 references that are websites and based in the United States. Stewardship is the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries, leading to sustainable benefits for the economy, the environment and society. (ACRE. 2020, July) A decision-making situation consists of several components, including the decisions themselves and actual future events, known as states of nature. When a decision is made, the decision maker does not know which natural states will occur in the future and has no control over them (III, B.W. T. 2018). Our core values represent the things we treasure most in life. They’re the essential foundation for finding our life purpose because they’re the “how” we will find our “why.” Saint Leo University core value states that Our Creator provides us with an abundance of resources. We foster a spirit of service in order to use our resources for university and community development. We must be resourceful. To fulfill Saint Leo University’s mission and goals, we shall optimize and apply all of our community’s resources. When our values are clear to us, making decisions becomes easier. There are a few steps I would like to share: Do not criticize the company. Celebrate what the company does well as a good steward. It should be promoted to others. This does not imply lying or fabricating false stories; instead, focus on the positive. When asked about a recent problem or issue, be candid but upbeat. Be fiscally responsible with company funds. Company money is real, and it does not grow on trees any more than your own money does; therefore, spend it wisely and prudently. Being a good steward is comparable to being a good ambassador. A good steward is a respected representative who promotes their company on their behalf. They meet and greet and engage with many people, never knowing who might later be a friend or a foe. The build and cultivate relationships (Willkomm, A. 2018, August)). Ethics is about making the best possible decisions concerning people, resources and the environment. Ethical choices diminish risk, advance positive results, increase trust, determine long term success and build reputations. Leadership is absolutely dependent on ethical choices. I have learned from my work that honesty, responsibility, respect and fairness are the values that drive ethical conduct for the project management profession and where the best outcome is the most ethical one. Responsibility is our duty to take ownership for the decisions we make or fail to make, the actions we take or fail to take, and the consequences that result (Marian University. 2019). When we make errors or omissions, we take ownership and make corrections promptly. When we discover errors or omissions caused by others, we communicate them to the appropriate body as soon they are discovered. We accept accountability for any issues resulting from our errors or omissions and any resulting consequences. I am fortunate to work with many capable leaders. There is an example, years ago, I hired an aerial photographer to photograph a park that we were constructing. I paid before examined the photos, and realized later that the quality was poor. My boss accepted responsibility for the error and admitted it was his fault. When I supervise the graduates, I remember what I learned from him: be very specific about the tasks and take responsibility for any potential failures. References: ACRE. (2020, July). What Is the Purpose of Stewardship? Retrieved September 8, 2022, from https://www.csrwire.com/press_releases/45427-what-is-the-purpose-of-stewardship- Marian University. (2019, January 24). Blog | Marian University. Default. Retrieved September 8, 2022, from https://www.marian.edu/blog/posts/marian-blog/2019… Willkomm, A. (2018, August). On Being A Good Steward. Graduate College of Drexel University. Retrieved September 8, 2022, from https://drexel.edu/graduatecollege/professional-de… III, B.W. T. (2018). Introduction to Management Science (13th ed.). Pearson Education (US). https://reader.yuzu.com/books/9780134731254 Will attach login for book so you can access the questions for part 1. Also there is a sample that is attached as well.
A
B
C
D
E
1 Chapter# 12 Exercise # 1 sample solution – Dr. Bal.
2
3
4 Decision
Good Weather
Bad Weather
MXM Return
Min Return
5
6 Lease Land
$90,000
-$40,000
$90,000
-$40,000
7 Buy Saving Certificate
$10,000
$10,000
$10,000
$10,000
8
9 Max. of
$90,000
$10,000
10
11 Decision Summary:
12 Decision
Criteria
Payoff value
13 Lease Land
Maximax=
$90,000
14 Buy Saving Certificate
Maximin=
$10,000
A
B
C
D
E
F
G
H
I
J
1 MBA 550 DSS Chapter 12 Sample solution Exercise #3 – Dr. Bal
2
Result of MaxiMin criterion. Cell E6 and
3
Economic Conditions
E7 contains Minimum payoff for each
4 Decision
Good
Recession
Maximum Payoff Minimum Payoff
decision (row) and cell E9 computes
5
Maximum amomg E6 and E7. Cell E9
6 Bellhop
$120,000
$60,000
$120,000
$60,000
contains 85,000 payoff that leads us to
7 Manager
$85,000
$85,000
$85,000
$85,000
decide Manager.
8
9 Column Maximum
$120,000
$85,000
$120,000
$85,000
10
Result of MaxiMax criterion. Cell D6 and D7
11
contains Maximum payoff for each decision
12 Regret table
Economic Conditions
(row) and cell D9 compute the Maximum
13 Decision
Good
Recession
Mxm Regret
among D6 and D7.
14 Bellhop
$0
$25,000
$25,000
15 Manager
$35,000
$0
$35,000
Result of MiniMax criterion. Cell D14 and D15
16
Column Minimum –>
$25,000.00
contains Maximum regret for each decision (row)
17
and cell D16 compute the Minimum among D14
18 Hurwicz criteria
and D15.
Note how regret values are calculated in
19 Alpha ? =
0.4
cells B14:C15
20 1-? =
0.6
Note the formula in cells D21 and D22. It uses
21 Bellhop
$120,000
$60,000
$84,000
alpha and one minus alpha values. These values
22 Manager
$85,000
$85,000
$85,000
are written in cell B19 and B20.
23
Column Maximum –>
$85,000
Note the formula in cell D26 and D27. It uses 0.5 written
24
in cells B25 and C25 since there are two (0.5 each)
25 Equal Likelihood
0.50
0.50
states of nature. If there were four states of nature you
26 Bellhop
$120,000
$60,000
$90,000
will use 0.25 for each of the four state of nature.
27 Manager
$85,000
$85,000
$85,000
Alternatively, you can use the following formula in cell
28
Column Maximum –>
$90,000
D26:
29 Decision Summary
=AVERAGE(B26:C26)
30 Name of the Criteria Decision
and a similar one in cell D27.
31 Maximax
Bellhop
32 Maximin
Manager
MaxiMax and MaxiMin criterias were not required in
33 Minimax regret
Bellhop
exercise #3, I have just added them to show how to use
34 Hurwicz
Manager
them.
35 Equal Likelihood
Bellhop
A
B
C
D
E
F
G
H
I
36
37
What happens if there are three states of nature? Consider an example below? I
38
will assume the same values of Alpha and 1-alpha as in cells B19 and B20
39
respectively
40
41
42 Decision Alternative
State 1
State 2
State 3
Hurwicz
Equal Likelihood
43
1
300
200
500
320 333.3333
44
2
100
600
400
300 366.6667
45
Column Maximum –>
320 366.6667
46
47
Column Maximum in cell E45 is 320.
Column Maximum in cell F45 is 366.7.
48
This
correspond
to
the
decision
1.
So
This correspond to the decision 2. So
49
using Hurwicz criteria, you should
using Equal Likelihood criteria, you
50
recommend making decision 1.
51
should recommend making decision 2.
52
I have used Avearge function in cells
53
F43 and F44. Alternatively, you could
54
have multiplied payoff in each state by
55
1/3 or 0.33 and add them.
56
57
58
59
60
J

Purchase answer to see full
attachment