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You are planning a trip home at the end of the semester and need to make plane r

ID: 3220690 • Letter: Y

Question

You are planning a trip home at the end of the semester and need to make plane reservations soon. However, you've just had a preliminary interview with a consulting firm that seemed to go very well. There's a chance that they will want you to stay for a few days at the end of the semester for a round of interviews at their offices, which will mean you'll have to change the date of the flight if you make the reservation now. Suppose that you can purchase a changeable fare for $650 or a non-refundable fare for $550 for which a change costs $150

Construct a payoff table for this set of actions using total cost as the "payoff."

Complete the payoff table below.

State of Nature

Do Not Stay for Interviews

Stay for Interviews

Fully Changeable Fare

$-------

$----------

Non-refundable Fare

$--------

$---------

(Simplify your answers.)

State of Nature

Do Not Stay for Interviews

Stay for Interviews

Fully Changeable Fare

$-------

$----------

Non-refundable Fare

$--------

$---------

Explanation / Answer

Solution:-

State of Nature

Do Not Stay for Interviews

Stay for Interviews

Fully Changeable Fare

$650

$650

Non-refundable Fare

$550

$150

     

State of Nature

Do Not Stay for Interviews

Stay for Interviews

Fully Changeable Fare

$650

$650

Non-refundable Fare

$550

$150

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