Small Business

QUESTION 1 (20 marks) An investor is considering 4 different opportunities, A, B, C, or D. The takings for each opportunity will depend on the economic conditions, represented in the payoff table below. Economic motive unfortunate AverageGoodExcellent enthronization (S1) (S2) (S3) (S4) A 5075 20 30 B 8015 40 50 C -100 300 -50 10 D 2525 25 25 a) What finis would be do to a lower place maximax? Answer This is where the finis maker takes a gamble and looks at the beaver of the go around, thereof the decision is to invest in opportunity C = 300 STATES OF report| Decisions| Maximum in a row| A| 75| B| 80| C| 300 the trounce of the opera hat| D| 25| b) What decision would be made under(a) maximin?

Answer This is where the decision maker has a pessimistic picket hence looks at the worst resultant and select the best, so the best of the worst is to invest in opportunity D = 25 STATES OF nature| Decisions| Minimum in a Row| A| 20| B| 15 | C| -100 | D| 25 the best of the worst| c) What decision would be made under minimax tribulation? Answer This calculation is done by subtracting each outcome in the column from the best outcome in the same column. therefore * Calculation ! of Regrets * * Investment| * Demand (States of Nature)| * | * |...If you want to defecate a full essay, assure it on our website: BestEssayCheap.com

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