BUAD346 Lecture Notes - Lecture 1: Decision Rule

• School: University of Delaware
• Department: Business Administration
• Course: BUAD346
• Professor: Kydd Christine

Document Summary

Assignment 4 solutions a) identify the stages, states, criterion and decision rule for this problem. Decision: how much money should be allocated words the three plants: use dp to determine the optimal allocation of capital among the three plants. The optimal decision is to invest million in chicago, million in baltimore, and in akron. The optimal decision is to invest million in chicago, million in baltimore, and. in akron: determine the optimal allocation of capital among the three plants if only million is available for investment (maximum of million to any one plant still applies). If this were the case, there would be two optimal solutions. The first would be to give million to chicago, million to baltimore, and million. The second would be to give million to chicago, million to baltimore, and sh to akron.