Computers and Technology, 14.06.2021 15:20 alyo31500
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.
Economy
Investment Decline Expand
A 0 85
B 25 65
C 40 30
Bank 10 10
Required:
What decision should be made according to the minimax regret decision criteria?
Answers: 2
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An investor is considering 4 investments, A, B, C and leaving his money in the bank. The payoff from...
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