An investor is considering 4 investments, A, B, C and leaving his money in the b

Question

An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from each investment is a function of the economic climate over the next 2 years. The economy can expand or decline. The following payoff matrix has been developed for the decision problem.

A B C D
1 Payoff Matrix
2
3 Economy
4 Investment Decline Expand
5 A 0 85
6 B 25 65
7 C 40 30

8 Bank 10 10



What decision should be made according to the maximin decision rule?
1.A
2.B
3.C
4.Bank

What decision should be made according to the minimax regret decision rule
1.A
2.B
3.C
4.Bank

Explanation / Answer

the payoff matrix developed for the decision problem is not clear so plz whats the question?

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