Problem
1. Reconsider the Job Offers case at the end of Chapter 4. Suppose that Robin is unwilling to give a precise probability for disposable income with the Madison Publishing job. Conduct a sensitivity analysis on the expected value of the Madison Publishing job assuming that the probability of disposable income being $1,500 could range from zero to 1. Does the optimal choice-the job with the highest expected overall score-depend on the value of this probability? [Hint: Remember that probabilities must add up to 1, so P(Disposable Income = $1,300) must equal 1 - P(Disposable Income = $1,500).]
2. Suppose Robin is unable to come up with an appropriate set of trade-off weights. Assuming that any combination of weights is possible as long as all three are positive and add up to 1, conduct a sensitivity analysis on the weights. Create a graph that shows the regions for which the different job offers are optimal (have the highest expected overall score). (Hint: Given that the three weights must sum to 1, this problem reduces to a two-way sensitivity analysis like the stock market example.)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.