Queen's College .

Ayertena Campus
Quantitative Methods for Decision Making (MBA)
Assignment II (Group Assignment) @ December, 2023

1. Mr. X is a College president. He wants to launch new college branch and open one best
academic department in the new branch since 2015 E.C. In view of the fact that the new branch
has the same demand and payoff situation with the present, he wants to employ the following
data of the former branch as an input. The decision table for Mr. X conditional value is shown in
the following payoff table.

Act Demand
Low Medium High
BA-In Accounting 150,000 200,000 230,000
BA-In management 100,000 250,000 200,000
BA-In marketing 140,000 130,000 120,000

Question A

a) What is your pessimistic decision?

b) What is your optimistic decision?
c) What is your decision based on Hurwicz criterion with α =0.75 for favorable marker.
d) What is your decision based on the savage criterion?

Question B: If the probability of each state of nature is 0.3,0.4, and 0.3 for low,
medium, and high demand respectively; find the optimal decision via:
a) EMV b) EOL c) Decision Tree graphical diagram

1. ABC College has a project plan to develop new system for online Registration and online
reposting the students’ grade report. The required types of activities and the time which is
required to do each task are well identified as indicated in the table. Answer the following
questions based on the given table.
Activity Predecessor Activity time (Weeks)
A None 4
B A 13
C B 10
D A 7
E D 9
F E 3
G C, F 11
Total 57

1
 A. Construct the project network Diagram using Activity on Node (AON).
B. Determine the critical path
C. Determine the Earliest Start, Earliest Finish, Latest Start and Latest Finish times

2. Habesha Brewery and St. George Brewery companies are stiff competitors to increase
their market share in the industry using the following marketing strategies. The amount of payoff
from each strategy is indicated below:

Strategies of Habesha Strategies of St. George Brewery company

Brewery company Price discount Advertisements Public relation
Price discount 3 6 10
Advertisements 11 9 4
Public relation 5 2 8

A. Find dominating strategy for each Company.

B. Calculate the expected gain for offensive company (Habesha).
C. Calculate the expected loss for defensive company (St. George).
D. Determine the type of strategy existed in this game theory